MILWAUKEE — The cost of food is rising, according to a new food price outlook done by the United States Department of Agriculture (USDA).
If you are going grocery shopping, you may want to take a second look at your budget. The USDA anticipates the cost for all food will continue to increase.
“I just came to grab something for a friend of mine. In and out, so not personally shopping, but also observing the prices,” said Paskel, a shopper.
TMJ4 News caught Paskel during a food run at a local grocery store. She’s bothered by the higher costs, but anticipates it, considering world events.
“You just have to be aware (and) prepared with life, in general,” she said.
The Consumer Price Index (CPI) indicates the costs for 11 food categories are trending up. This includes meat, poultry, dairy, vegetables, and other foods.
Shelly Mayer, executive director of the National Dairy Producers, says excessive costs are part of a domino effect in the supply chain.
“It’s based on when fuel went from $2 to $4, that adds a cost at every step of the way from the field to the plate,” Mayer said.
The report anticipates all food prices are now expected to increase between 4.5% and 5.5% in 2022.
Prices for poultry are expected to increase between 6% and 7%. Dairy? Between 4% and 5%.
So, what will be the catalyst to bring prices down?
“The first is fuel, and the cost to get things from one place to the next. The other thing is the volatility we have in the world,” Mayer said. “Another thing is when we have volatility in weather.”
With the future of food costs so uncertain, Paskel said she’s shopping smarter.
“I just go out, wholesale, and buy half of a cattle or beef and have them process it to have food for the entire year, instead of having to rely on if the demand is going to be there,” Paskel said.
You can read the full USDA report here.