The October CPI report showed that food inflation rose 0.2% month-on-month and 2.1% year-on-year. Cal Poly agribusiness professor Ricky Volpe joins Wealth! discussing the outlook for food prices in the US.
Volpe explains that despite the uptick, “we're on a normal path.” He notes that food price inflation is expected to rise by about 2% per year on average, but 2025 grocery inflation is expected to come in below that historical trend.
“We're looking at a year of real low grocery prices, as food inflation lags behind economy-wide inflation,” Volpe said.
Even though categories such as beef, pork, and chicken are among the hardest hit by rising grocery prices, Volpe sees consumers returning to their normal consumption patterns.
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This post was written by Angel Smith
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