There has been double-digit increases in demand for fresh produce at supermarkets, and the USDA projects that retail prices for fruits and vegetables will come in below historical averages.
The USDA reports, “Consumer Price Index growth for fruits and vegetables has been lower than the 20-year average of 2 percent,” according to its October 23rd Food Price Outlook.
Current projections indicate retail prices will continue to grow slower than the historical average.
“This aggregate decline is driven by a 0.5 percentdrop in the price of fresh vegetables,” the USDA reports. No growth and a 0.1 percent increase in the price of fresh fruits and processed fruits and vegetables only partially offset the decline of fresh vegetables, the agency said.
So far in 2020, compared to 2019, overall grocery prices have increased 3.4 percent, while restaurant prices have climbed 2.8 percent. Forecast for the full year, overall 2020 grocery prices are expected to increase between 2.5 percent and 3.5 percent, while restaurant prices are projected to rise between 2 percent and 3 percent.
For 2021, the USDA said overall grocery prices will increase between 1 percent and 2 percent, while restaurant prices are expected to increase between 2 percent and 3 percent.