After the largest inflationary jolt in prices in a half century, “We are seeing signs that grocery prices may be turning a corner,” said White House national economic adviser Lael Brainard on Thursday. The grocery inflation rate was 1 percent over the past 12 months, Brainard said during a speech, “but corporations have to do more to bring their prices down.”
During a speech on President Biden’s economic record, Brainard said high inflation in 2022 and 2023 was the result of pandemic-caused supply chain disruptions and Russia’s invasion of Ukraine. “Even though shipping costs and global food commodity prices have declined sharply, grocery prices have been slow to come down, and grocery store margins remain elevated relative to pre-pandemic levels,” she said.
The 2021 increase in SNAP benefit levels and this year’s launch of Summer EBT grocery assistance for school-age children will help low-income families cope with higher food prices, said Brainard.
Grocery prices soared by 11.4 percent in 2022, the highest annual rate since 1974, and by 5 percent in 2023. The USDA forecasts grocery prices will rise 1.2 percent this year compared to 2023.
Critics blame inflation on excessive spending under President Biden.