Inflation has declined steadily over the past two years, despite a slight slowdown October AND November. Prices for items such as gasoline, used cars and energy have fallen accordingly. Food prices continue to outpace inflation and have increased by 28% since 2019.
More than 85% of consumers say they feel frustrated with rising grocery prices, and more than a third say they have decided to buy fewer items to save money, according to a 2024 study by RR Donnelley.
However, experts say that high food prices will remain.
“When food prices rise, they tend to stay there,” said Claudia Sahm, chief economist at New Century Advisors. “Inflation may fall again, so we won't see big price increases. But apart from a general crisis, we are not seeing a general decline in prices.”
Experts are also skeptical that political intervention can affect food prices.
“There's really nothing government policymakers can do about it,” said Jason Miller, a professor of supply chain management at Michigan State University. “It's not unique to the United States. It has been felt around the world and at this point we just have to wait and see how things pan out as we move forward.”
The uncertainty resulting from the current political climate also makes it difficult to predict the direction of changes in food prices.
“There is no doubt that tariffs will make everything significantly more expensive, especially food,” said Rakeen Mabud, chief economist at Groundwork Collaborative, a progressive advocacy group. “The same applies to mass deportations. We have workers in this country who really support our food system, and when you start really hurting that workforce and turning them away, it hurts our entire economy.”
Watch video above to find out why food is still so expensive in the United States.