In a normal year Food Price Inflation will run 2% to 4%. %. In 2023, food prices increased by 5.8 percent. Food price growth slowed in 2023 as economy-wide inflationary pressures, supply chain issues, and wholesale food prices eased from 2022. Food-at-home prices increased by 5.0 percent, and food-away-from-home prices increased by 7.1 percent.
UDSA economists said in their forecast that food prices are expected to continue to decelerate but not decline in 2024. In 2024, all food prices are expected to increase 2.9%, with a prediction interval of -0.9% to 6.8%.
Grocery food prices are predicted to increase by 1.6%, with a prediction interval of -4%-7.8%. Restaurant food prices are predicted to increase by 4.3% with a prediction interval of2.3%-6.3%.
UDSA economists said in their forecast that food prices are expected to continue to decelerate but not decline in 2024. In 2024, all food prices are expected to increase 2.9%, with a prediction interval of -0.9% to 6.8%.
Grocery food prices are predicted to increase by 1.6%, with a prediction interval of -4%-7.8%. Restaurant food prices are predicted to increase by 4.3% with a prediction interval of2.3%-6.3%.
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Many factors contribute to higher prices, among the most important are:
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If you haven’t yet increased your menu prices, you should consider price increases. According to the National Restaurant Association, Fullservice menu prices rose 3.8% between February 2023 and February 2024. That was the smallest 12-month gain since April 2021. Elsewhere in the food-away-from-home sector, the price index for food from vending machines and mobile vendors increased 7.7% between February 2023 and February 2024.
Countering this type of food cost inflation calls for a review of all controllable expense categories - not just food cost. Because controlling food costs in a hyper-inflationary period requires multiple actions, we have developed this exclusive website that contains tips, advice, ideas, and references to help you impact your bottom line. Many of the changes you have already made and will continue to make to your processes and procedures will serve you well when inflation moderates. The right choices now will pay dividends well into the future.
We will continue to add content to the site, and we welcome your ideas – simply hit the “Share Best Practices” at the bottom of any page and share your ideas – we will add new ideas so everyone can counter inflation.
Countering this type of food cost inflation calls for a review of all controllable expense categories - not just food cost. Because controlling food costs in a hyper-inflationary period requires multiple actions, we have developed this exclusive website that contains tips, advice, ideas, and references to help you impact your bottom line. Many of the changes you have already made and will continue to make to your processes and procedures will serve you well when inflation moderates. The right choices now will pay dividends well into the future.
We will continue to add content to the site, and we welcome your ideas – simply hit the “Share Best Practices” at the bottom of any page and share your ideas – we will add new ideas so everyone can counter inflation.