Food inflation crisis
A combination of higher operating costs for food producers, retail profits, geopolitical tensions, health scares and supply-chain disruptions have pushed food prices up in recent years, according to an analysis by the U.S. Department of Agriculture.
The agency predicts that egg prices will rise by another 41.1% this year, primarily because of the highly pathogenic avian influenza (HPAI) outbreak.
Unsurprisingly, these rapidly escalating food prices are impacting consumer sentiment. According to R.R. Donelley’s 2024 CPG + Grocery Consumer Report, 85% of consumers said they were frustrated by their grocery bills and roughly a third said they had cut back on the number of items they buy, according to R.R. Donelley’s 2024 CPG + Grocery Consumer Report.
Unfortunately, there’s more frustration ahead for most households. President Trump’s tariffs on Mexican imports could spur prices even further, Target CEO Brian Cornell told CNBC. With that in mind, this could be a good time to revise your weekly grocery budget.
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To tackle food inflation in 2025, focus on buying in bulk, especially non-perishables. If you find a pack of canned tuna on sale, it’s probably better to buy more than you need to stock up for the future.
You could also switch to a more affordable grocery chain. Costco, Aldi and Lidl are some of the most budget-friendly grocery chains in America, according to Ramsey Solutions.
Buy seasonal, local produce to avoid high prices from tariffs. Start a small home garden for herbs and easy vegetables, and cook from scratch to save on processed foods. Preserve bulk purchases by freezing or canning.
You could also save some money on food by using coupons and keeping an eye out for special sales, using a food tracking app to track expenses and planning your meals in advance to avoid unforeseen price shocks. Like the Obamas, try to keep an eye on how much food costs before you consume it.
These simple habits can help you and your family even if or when the food inflation crisis is resolved.
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