This year marks the smallest yearly hike in grocery store food prices in six years, according to USDA.
Grocery store food prices rose an average of 1.2 percent, which is significantly lower than the 20-year average of 2.7 percent.
One USDA economist says the shocks from COVID-19 sent prices skyrocketing by 11.5 percent in 2022, but it appears that nearly five years later those shocks have subsided.
“So we had inflationary pressures from supply chain issues coming out of the pandemic, we had shocks due to the war in Ukraine, energy prices rising, and an Avian Influenza outbreak that really drove egg and poultry prices in 2022. Throughout 2023 and 2024, we really saw an easing of a lot of those inflationary pressures,” said Megan Sweitzer.
While it is not common for grocery store prices to decline in the new year, Sweitzer says USDA predicts similar price growth, with most prices rising far below their long-term averages.
