If you were shopping for groceries 40 years ago, you remember skyrocketing food prices.  In the first three months of 1979, food prices increased of 17.7%.  Compare that to 2016 and 2017 when the average grocery store total dropped.  In 2018 food prices increased, but by 0.5%; which is actually below the rate of inflation.

 

USDA economist, Gianna Short, said this year prices may end up only 1% higher than last year.  On top of that, some analysts say that this low food price inflation could be possibly because of stable or falling energy prices, or growing food production worldwide.  Short added competition when it comes to major food sellers might play a part as well.

 

“Retailers really focus on competing on price, so it's not in their interest to have prices go all over the place. Because if you jack up a price maybe your customer will go elsewhere.”

 

When it comes to 2020, Short is forecasting a roughly 1% hike in grocery prices.

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