According to the U.S. Agriculture Department this week, they are expecting retail food prices to increase 3.5% to 4.5% this year.
This is a large forecast from stable food prices we have been experiencing and quite an acceleration from a small climb of only 0.8% in 2010.
The expected increase will be biggest since 2008.
The Wall Street Journal article reports, “Restaurant chains are having a harder time passing along their higher ingredient costs, as consumers opt for the cheaper alternative of eating at home. According to the Bureau of Labor Statistics, retail grocery prices were 6.3% higher in September than a year earlier, while retail prices of food eaten away from home were up 2.6%.”
If you are struggling with higher food costs, please contact Synergy, we can help.