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Friday, June 2, 2023 | 
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Will grocery store prices rise in 2022?

Food prices will continue to rise in 2022, but not as fast at the last two years, report says

By Ashley Nash
SHARE Will grocery store prices rise in 2022?
A sign at a grocery store.

A sign at a grocery store in the Manhattan borough of New York City on Thursday, February 10, 2022. attributes a production shortage impacting the types of orange juice available for purchase.

Teddy Shaffrey, Associated Press

The U.S. Department of Agriculture reports that food prices are expected to grow between 2.5% and 3.5% this year.

Food cost breakdown: These are the 2022 growth predictions of food prices according to the USDA:

  • At-home food costs: Grocery store prices, or at-home food costs, are expected to grow between 2% and 3% in 2022.
  • Away from home costs: Also known as restaurant costs, food-away-from-home costs are expected to grow between 4% and 5%.
  • Seafood: Predicted to rise between 3.5% and 4.5%.
  • Dairy products: Predicted to increase between 2.3% and 3.5%.
  • Fats and oils: Between 3% and 4%.
  • Fresh fruit: Between 2% and 3%.
  • Processed fruits and vegetables: Between 2.5% and 3.5%
  • Cereal and bakery products: Between 2% and 3%.
  • Non-alcoholic beverages: Between 1.5% and 2.5%.
  • Other foods: Between 1.5% and 2.5%.

The inflation rate is slowing: Although food prices are set to increase this year, the 2022 predictions are much lower than the price increases the country saw in 2020 and 2021, the USDA reported.

  • 2020: At-home food prices increased by 3.5%, and away-from-home prices increased by 3.4%.
  • 2021: At-home food prices increased by 3.5%, and away-from-home prices increased by 3.4%.

What causes inflation?: Inflation refers to the rise and fall of prices for goods and services. Inflation is caused largely by supply and demand. If consumers have a lot of extra spending money and are buying a lot of a good, the price of that good increases because it’s more difficult for suppliers to meet that demand, according to The New York Times.

  • Supply chain problems also contribute to inflation. For example — as stated in previous reporting — the war between Russia and Ukraine is affecting the food supply chain.
  • Russia and Ukraine are large suppliers of some of the world’s food products, such as wheat. Ukraine is also a hub for cargo ships that transport goods to the rest of the world, but the ports have been closed due to the war.
  • The aftereffects of the pandemic are still affecting food prices. The pandemic resulted in a labor shortage, product shortage, price increases and many other factors that have contributed to rising food costs, according to The New York Times.