Grocery Store Items That Will Become More Expensive in 2017
Food prices have dropped 1.6% from last year, according to the USDA. The USDA has compiled several food items that are expected to continue to fall in prices in 2016, but fair warning: these same foods are likely to be more expensive next year.
Overall, the USDA expects food prices to rise by about 2% during 2017. This looks like a lot of growth, but in reality it is slightly less than the average annual growth (2.5%). Here are some price predictions for staple foods:
- Poultry : Prices were 3.2% lower than last year, indirectly due to bird flu. They expect poultry prices to fall 2.0-1.0 percent by the end of 2016, but are likely to rise 1.5-2.5% in 2017.
- Dairy : Prices are 3.1% lower than in July 2015 and the USDA expects them to continue to fall from 0.5% to 1.5%. The warmer weather allowed the cattle to graze longer and produce more milk, creating surplus milk. Prices are likely to rise by 1.5-2.5% next year.
- Fresh fruit : Unlike other staple foods, fresh fruit prices are likely to rise by about 1.5-2.5% in 2016. In 2017, they will grow even more – from 1.0% to 2.0%.
- Fresh vegetables: Vegetable prices will also be higher this year. Certain factors, such as a stronger US dollar and low oil prices, have “softened the effects of the drought,” according to the USDA. They expect vegetable prices to rise by 0.5-1.5 percent this year, while in 2017 they will be fairly stable, ranging from -0.5 to 0.5%.
- Cereals and baked goods : Prices are expected to rise by 1.0-2.0% for the rest of the year, with prices expected to rise even more in 2017, increasing by 1.5-2.5%.
It’s worth noting that lower food prices were not good news for everyone. According to the Wall Street Journal , the hike is likely a welcome change for farmers, grocers and restaurants. However, from a consumer perspective, you want to know what to expect when it comes to your budget, especially since products likely make up the bulk of that budget. For more information, follow the links below.
Food price forecast, 2016-17 | USDA via Business Insider
Photo by: tasha .