According to the latest numbers from the USDA, the average American spent about 3.5% more on food at the grocery store compared to what was spent in 2019; the biggest year-over-year jump reported in a decade. A lot of those price spikes came early in the year brought on by disruptions in the supply chain caused by COVID-19. Since March and April, prices have generally decreased step-by-step, but are still higher year-over-year.
So what’s the outlook for 2021?
One economist does not expect food prices to decrease into 2021, “grocery store food prices will increase 1 to 2% in 2021.” USDA Economist, Carolyn Chelius, added some products, specifically meats, will sell for less next year.
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