What Does USDA Expect For Food Prices in 2021?

The USDA anticipates when we close the books on 2020, food shoppers will see a year-over-year grocery price increase between 2.5%-3.5%. But, when it comes to the 2021, USDA anticipates some wild swings, and unpredictability.

Why?

USDA Economist, Carolyn Chelius blames the supply chain disruptions this year.

And so we're expecting that food at home prices will converge closer to historical trends over the course of 2021.

Chelius is forecasting grocery store food price inflation between 1%-2% next year. And when you look at the 20 year average rate of increase of 2%, next year's increase would not be abnormal.

But it's not all about increases.

We could see some food prices drop in 2021. Beef prices, which are currently 8% higher than this time last year, could drop by as much as 2.5% in 2021. Chelius added there's also some price decline potential for poultry, pork, eggs, fats, and oils.

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