Inflation has cooled, but experts believe that food prices will remain high

Inflation has been steadily declining for the past two years, despite a slight slowdown October and November. Prices for commodities such as gasoline, used cars and energy have fallen accordingly. However, food prices continue to outpace inflation, increasing by 28% since 2019.

More than 85% of consumers report feeling frustrated with rising grocery prices, and more than a third say they are buying fewer items to save money, according to a 2024 RR Donnelley survey.

However, experts say that high food prices will persist.

“When food prices go up, they tend to stay high,” said Claudia Sam, chief economist at New Century Advisors. “Inflation may come down again, so you won’t see a big price increase. But outside of widespread depression, we’re not likely to see prices fall across the board.”

Experts are also skeptical about whether policy intervention can affect food prices.

“Government policymakers really can’t do anything about it,” said Jason Miller, a professor of supply chain management at Michigan State University. “This is not something unique to the United States. It’s felt all over the world and now we just have to wait and see how things develop as we move forward.”

The uncertainty caused by the current political climate also makes it difficult to predict the rise in food prices.

“There’s no question that fares are going to go up significantly, especially food,” said Rakin Maboud, chief economist at the Groundwork Collaborative, a progressive advocacy group. “It’s the same with mass deportations. There are workers in this country who really support our food system, and when you start really hurting that workforce and sending them away, it hurts our entire economy.”

Follow up video above to learn why food is still so expensive in the United States.