Unfortunately for inflation-ridden consumers, 2025 will not bring any immediate recovery as food costs are likely to continue to rise due to environmental factors and recent outbreaks threatening food safety.
As of December, overall food inflation was 2.5% year over year, according to Bureau of Labor Statistics. Summary of the Consumer Price Index. Grocery prices (defined as “food at home”) rose 0.3 percent month-over-month in December, while spending on meals (also known as “home away from home”) made a similar addition.
Average annual household prices were five percent higher in 2023 than in 2022, According to the United States Department of Agriculture (USDA). The department found that the prices of fats and oils increased by nine percent, the highest increase among food products in 2023. Prices of sugar and sweets have increased by 8.7 percent while cereals and bakery products have increased by 8.4 percent. There were also increases for beef and veal (3.6%), eggs (1.4%), fresh vegetables (0.9%), fresh fruit (0.7%) and fish and seafood (0.3%).
The recent price hike cannot be attributed to just one factor, The Wall Street Journal Reported earlier. A recent – and ongoing – bird flu outbreak is killing chickens across the country and causing egg prices to soar.
The cost of eggs has been rising since 2022, when US officials confirmed A highly pathogenic strain of avian influenza (H5N1) in a commercial herd. Last June, a flock of about 103,000 turkeys in Cherokee County, Iowa, was reportedly infected with bird flu. Iowa Department of Agriculture and Land Stewardship. Another outbreak was reported among a flock of about 4.2 million laying hens in Sioux County, Iowa. In December, a patient in Louisiana was hospitalized with a severe case of H5N1 bird flu, according to the Centers for Disease Control and Prevention (CDC). Confirmation. Since April 2024, a total of 61 cases of H5N1 bird flu have been reported within the United States.
“Eggs are one of the primary drivers of food inflation,” wrote WSJ’s Patrick Thomas and Jesse Newman. According to the latest data from the Department of Labor, “The egg index was up 37 percent from a year ago, and the average retail price of a dozen large eggs in December rose nearly 14 percent to $4.15. “
In California – where a A state of emergency The announcement was made amid growing concerns about bird flu, which has spread to dairy cattle and humans – the average price of a dozen eggs is now $8.97, Barron reports. Recently, the average cost for a carton of eggs is $4.85 per dozen, according to the USDA.
“The spread has the potential to affect prices for poultry and even dairy products,” said Barron’s Megan Leonardt. “Avian influenza was first detected in dairy cattle in March 2024 and has led to reduced milk production.”
Lower prices are likely if the number of bird flu cases starts to decline. But considering that the epidemic is spreading (The The latest epidemic (which plagued Long Island’s last major commercial duck farm), seems unlikely at this time. In fact, U.S. producers are likely to face more outbreaks and less egg supply this year.
Along with bird flu, extreme environmental conditions and national disasters have increased food prices. Ongoing drought conditions in the Western and Plains states have threatened livestock livelihoods, forcing many producers to begin culling their herds.
Want more great food writing and recipes? Subscribe to Salon Food’s newsletter, Bites.
“When drought conditions reduce forage production and availability, beef cattle producers must often purchase additional feed and forage or reduce their herd size,” USDA explained. “Periods of more severe drought are associated with declines in U.S. beef cattle herd size, such as when the national beef cattle herd declined by about 1 to 2 percent a year during the drought between 2011 and 2015. “
Data from the Bureau of Labor Statistics shows that since 2019, sirloin steak prices have increased by 38 percent, while ground beef prices have increased by 45 percent. Sirloin steak prices Average $11.67 per pound In December, .0 12.01 per pound compared to November’s high. Ground beef prices averaged $5.61 per pound in December, compared to a staggering $5.67 in September.
Meat and eggs aren’t the only food items with rising prices. Some of our favorite dessert tricks are also getting more expensive because of it High costs of cocoa And sugar. The WSJ reports that an unnamed candy company will raise its prices by 10%. Similarly, Congra brands Swiss Miss Hot Cocoa and Duncan Hines will increase product prices. The high price of cocoa beans exposed to climate change has also encouraged major snack companies such as Hershey’s and Mondelez to continue raising their prices.
Read more
About food inflation:
