Organic Food Price Inflation is Expected to Rise in Tandem with Conventional

Organic Food Price Inflation is Expected to Rise in Tandem with Conventional

Food Price Inflation Is Expected to Rise

USDA raised an overall 2020 food price inflation outlook due to rising costs associated with COVID. Overall U.S. food price inflation is now forecast rise more than expected in 2020 as price increases seen as a result of the Covid-19 pandemic have been slow to decline.

USDA’s outlook sees food prices increasing by 2.5% to 3.5% in 2020 raises the overall inflation level well above the 20-year average of 2.3%, Most of the gains are seen in grocery stores which will further benefit organic and non-GMO food price inflation. Restaurants are expected to see inflation gains of 2% to 3% would still be under the 20-year average of 2.8%. Grocery prices have risen an average of 2% over the last 20 years, which means USDA’s outlook for a 2.5% to 3.5% rise remains nearly 33% above that historical average.

 

 

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