U.S. food prices may decrease in 2023
Following a complicated 2022 with rapidly increasing food prices, U.S. federal agencies are projecting a much kinder 2023 as the main conflicts driving the surge have now been partially resolved, Food Navigator reports.
In 2021-22, retail prices experienced a record spike of 11%, the highest in over 40 years according to a report by the U.S. Government Accountability Office (GAO).
This led to many consumers seeing up to 30% of their total income going to food purchases.
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Events such as adverse weather due to climate change and animal disease outbreaks drove prices up during 2022.
Additionally, the armed conflict in Ukraine heavily impacted agriculture in Europe, with the commonwealth already suffering from input cost surges in electricity and other energy sources.
Supply chain disruption, a remnant of the COVID-19 pandemic, also had an important impact on food prices.
The USDA’s consumer Price Index shows that between January and February, economy-wide inflation grew by 0.6%, while prices rose by 0.4% during the same period.
This represents a 6% and 9.5% increase year-on-year, respectively.