Grocery prices will rise 6.6 percent this year, with lower beef and pork prices helping to constrain the inflation rate after last year’s 11.4 percent rise, said USDA economists. At the start of the year, the USDA forecast an 8.6 percent increase in prices, but it has lowered its estimate for two months in a row.
“The continuing increases in the Federal funds (interest) rate by the Federal Reserve placed downward pressure on prices, and prices for unprocessed agricultural commodities have declined since peaking in May 2022,” said the USDA’s monthly Food Price Outlook. Prices declined for 10 food categories in March.
Beef prices were forecast to decline by 0.5 percent this year and pork prices by 2 percent.
But cereal and bakery product prices are expected to rise by 11.7 percent, sugar and sweets by 10.1 percent, and processed fruits and vegetables by 9.9 percent. Those three categories account for one-fifth of consumer spending on food at home.