Updated USDA Report Says All Food Prices Will Continue to Increase

Thinking of planting a garden this year – this might be the year to do it with the rising cost of food prices. Per the U.S. Department of Agriculture (USDA) newly updated March 2022 report on food prices, “all food prices” are expected to increase in the coming months. More specifically, the report states that the cost of eating out will see an increase between 5.5 and 6.5 percent, while grocery prices are slated to jump between 3 and 4 percent in the remainder of 2022, adding to recent price increases that most consumers have already experienced. The USDA report points out these increases, which will impact everything from meats, poultry, eggs, and dairy products to cereals and bakery items, are the highest they’ve been in decades.

For various reasons, certain foods will see larger price increases than others. Topping the list with the largest increase compared to 2021 is beef and veal. According to USDA, that category is now slated to see a 3.4 percent bump in 2022, beef and veal prices have risen 16.2 percent since last year.

Another category that’s fated to see a big jump is poultry. The USDA predicts poultry will see a 6 to 7 percent increase in price this year. Likewise, eggs will see a 2.5 to 3.5 percent bump.

“The impacts of the conflict in Ukraine and the recent increases in interest rates by the Federal Reserve are expected to put upward and downward pressures on food prices, respectively,” the report states. “The situations will be closely monitored to assess the net impacts of these concurrent events on food prices as they unfold.”

Here is a small list of other popular foods the USDA says will get even more expensive this year, and why.

Fats and Oils

Fats and oils prices are now predicted to increase between 6 and 7 percent this year, which means items like olive oil, canola oil, and shortening will gradually be getting more expensive. This adjustment follows “large price increases in January and February.”

Poultry

If you frequently shop for frozen chicken, rotisserie chicken, or raw chicken parts to cook, like breasts, legs, or thighs, you can expect to see prices rise by an estimated 6 to 7 percent over the next few months. According to the USDA’s report, one factor contributing to the rise of poultry prices is avian influenza, which will likely reduce the supply of American poultry while simultaneously limiting the international demand for it.

Eggs

Though eggs won’t see as big a price hike as poultry or dairy, we’d be remiss not to include this mealtime staple on this list, especially since consumers can still expect egg prices to rise between 2.5 and 3.5 percent. Like poultry, the reason for the increase is avian influenza.

Fresh Fruit

After large price increases at the start of 2022, fresh fruit prices are now predicted to increase between 5 and 6 percent this year. Similarly, processed fruit and vegetable prices are predicted to increase between 4.5 and 5.5 percent.

Dairy

While you may see a wide array of plant-based milks, yogurts, and other dairy products on your trips to the grocery store, the USDA stated, “Rapid increases in the consumption of dairy products have driven increases in retail prices in recent months.” Following a 1.6 percent increase in the prices for retail dairy products in February 2022, the USDA now predicts that dairy product prices will increase between a total of 4 and 5 percent in 2022

Other Food Price Increases to Look Out For

If you have a sweet tooth, get ready to spend more on sweets for the rest of 2022. Sugar and sweets prices are predicted to increase between 3 and 4 percent, and the USDA notes that consumers will see an identical price jump for cereals and bakery products. The non-alcoholic beverage market, which has been flourishing in recent months, is also poised to take a hit with prices likely rising between 3.5 and 4.5 percent.

The USDA predicts that fresh vegetable prices will now see less of a price increase than previously forecast. The prices of items such as fresh broccoli, string beans, and bell peppers will likely see an increase between 1 and 2 percent—an adjustment downward from 1.5 to 2.5 percent.