Posts Tagged “restaurant food prices”
Retail food price increases are expected to remain low at supermarkets and food stores for 2020, according to the latest USDA’s Economic Research Service Food Price report. Inflation is expected to be in a range from 0.5 to 1.5 percent.
That, the agency said, would make 2019 the fourth straight year of deflating or lower-than-average food inflation at retail. Over the past 20 years, retail food inflation has averaged about 2 percent per year.
Commodities with lower prices this year, range from poultry, to eggs, fats and oils, and fresh fruits. On the other hand, fresh vegetables in 2019 are projected to increase at inflation rates greater than the 20-historical average.
For the year 2021, USDA economists predict low retail food inflation will continue.
“In 2020, food-at-home prices are expected to increase in a range between 0.5 percent and 1.5 percent, as potentially the fifth year in a row with deflating or lower-than-average inflating retail food prices,” the agency said.
Retail fresh fruit inflation is forecast at -1.5 to -0.5 percent in 2019 and 1 to 2 percent in 2020. Retail fresh vegetable prices are pegged to jump 3 to 4 percent in 2019, but change just zero to 1 percent in 2020.
Restaurant food prices have increased at a faster rate than supermarket food in recent years; the USDA projects food-away-from-home inflation at 2 to 3 percent for both 2019 and 2020.
2019 is expected to see retail food prices increase in a modest range of between 0.5 percent and 1.5 percent, despite above-average inflation for fresh vegetables.
The would result in 2019 being the fourth year in a row with deflating or lower-than-average inflating retail food prices, according to the USDA’s recent Food Price Report.
The 20-year historical annual average for retail food price inflation is 2 percent. Last year, retail food prices rose 0.4 percent, the first increase in three years.
Restaurant food prices are now rising faster than supermarket food prices, while retail food prices and restaurant price inflation increased at similar rates from the 1970s to the early 2000s. Restaurant food prices have increased at a higher clip since 2009.
Higher labor and overhead costs for restaurants largely account for the difference in cost structures, the report said.
For that reason, decreasing commodity and wholesale prices have influenced supermarket pricing more than restaurant prices, the report said.
In 2020, supermarket food prices are again projected to increase between 0.5 percent and 1.5 percent. Both fresh vegetables and fresh fruit are expected to see retail price increases in 2020 below the 20-year historical average, according to the report.
The USDA reports restaurant food prices in 2020 are forecast to increase in a range between 2 percent and 3 percent, similar to recent years.