- Inflation has been pushing grocery prices higher.
- Supply chain issues are also behind price increases.
- Experts predict grocery prices will continue to rise in 2022.
You might have already noticed a higher price from your regular grocery shopping but predictions have it only getting worse.
There are several factors behind the increasing price of groceries. First off, we have to note inflation. The increasing costs of goods are closely tied to this. The Federal Reserve is attempting to slow this down with increasing interest rates, but it’s still taking its toll on the average consumer.
Then we have to factor in supply chain issues. Those have been an ongoing problem since the pandemic. Making matters worse is the war in Ukraine, which is doing even more to mess with supply lines.
With these problems weighing on the economy, it comes as no surprise that groceries are getting more expensive. Now let’s see how bad that’ll get with the latest grocery price predictions below.
Grocery Price Predictions
- According to the U.S. Department of Agriculture (USDA) March report, the price of groceries was expected to increase another 3% to 4% in 2022.
- However, current price estimates include food-at-home prices rising 5% to 6% in 2022.
- To go along with that, food-away-from-home prices will likely jump 5.5% to 6.5% this year.
Consumers have already been tightening their belts in relation to rising prices. Poor earnings reports for major retailers, including Target (NYSE:TGT) and Walmart (NYSE:WMT), dragged down retail stocks yesterday. That trouble might continue as consumers further conservative spending habits while shopping.
There are plenty of more price predictions that traders will want to read about below!
It’s not just groceries that are increasing in price as inflation affects the entire economy. A few predictions to check in on include mortgage interest rates, gas prices, and more. You can read up on all of this news at the following links!
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- Melvin Capital Liquidates After Meme Stocks Losses. 7 Things to Know.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.