According to a new United Nations report, food prices declined in December but remained near 19-month highs. However, commodities like coffee (KC=F) and orange juice (OJ=F) still lead the list of most expensive breakfast items. Former USDA Economist and Cal Poly Agribusiness professor Richard Volpe joins Wealth to analyze food inflation trends.
Volpe predicts continued food price increases, though at a slower pace than earlier in the year. While food prices typically rise by 2.5% annually, he expects this year’s increase to fall below that threshold, “assuming no unpleasant surprises.”
He identifies meat, dairy, and eggs as the main “problem spots” for inflation, suggesting that “if consumers are sort of willing to ride out the storm and sort of go light on those foods for the next few months, that’s going to be one way to sort of see their grocery bill stay flat.”
Volpe also advises preparing meals at home, noting that restaurant inflation remains “still way above normal.”
To watch more expert insights and analysis on the latest market action, check out more Wealth here.
This post was written by Angel Smith
