Retail Food Price Inflation Subsided Across Most Areas

USAgNet - 01/31/2025

Food-at-home prices increased by 1.2 percent in 2024, almost one-fourth of the increase in 2023 (5.0 percent) and lower than the 20-year historical average (2.7 percent). Of the food categories depicted in the chart, prices for 13 categories increased and 2 categories decreased in 2024.

Food price growth slowed in 2024 as economy-wide inflationary factors, such as supply chain issues and labor market pressures, continued to ease after contributing to high price growth in 2022. Prices for some inputs, including energy and unprocessed agricultural commodities, also remained below their 2022 peaks. In 2024, egg prices surged the most (8.5 percent) after a resurgence of a highly pathogenic avian influenza (HPAI) outbreak that began in 2022.

Beef and veal prices experienced the second highest increase (5.4 percent), and sugar and sweets were third highest (3.0 percent). In contrast, fish and seafood prices declined (1.9 percent) in 2024 as did dairy products (0.2 percent). The remaining food categories experienced price growth at a slower pace than their historical averages, including fats and oils (2.4 percent), nonalcoholic beverages (2.0 percent), pork (1.3 percent), fresh vegetables (1.0 percent), poultry (0.8 percent), other foods (0.6 percent), cereals and bakery products (0.5 percent), fresh fruits (0.4 percent), and other meats (0.3 percent). USDA, Economic Research Service (ERS) researchers project food-at-home prices will increase 1.3 percent in 2025, with a prediction interval of -2.7 to 5.5 percent.

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