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Grocery prices have outpacedinflationin recent years.
More than two-thirds of survey respondents said food prices have been the most impacted by rising costs.
Most respondents also believe that prices will continue to rise throughout 2025.
But what do economists think?Heres what a couple of them shared with GOBankingRates.
Were going to see prices stabilize, and thats likely it.
There are several reasons why grocery prices remain high.
Certain Foods Might See a Decline Eventually
Inflation measures the rising costs of everyday services and goods.
Disinflation, meanwhile, shows up when the rate of inflation is still positive but starts to fall.
This is whats been happening in recent months in the U.S.
In the 12-month period ending in July 2024, theaverage annual inflation ratein the U.S. was 2.9%.
Before that, it was 3% a minor but still significant shift.
Disinflation is a slow process, one that can take months or even years to occur.
As inflation has started to slow, grocery prices have also seen amore nominal increase.
Some foods have actually decreased in price.
In the world of economics, this is called deflation.
Egg prices, for example, dropped by more than 20% in 2023.
Certain produce, like tomatoes and lettuce, also dipped during that same year.
Some economists believe that prices will continue to increase slowly or, perhaps, even decline slightly.
But it will take time as things often do.
So its going to take some time.
In general, deflation doesnt happen all at once.
Nor does it impact all parts of the economy equally.
Consumer demand is another big one, one that might continue to impact prices next year.
There are several possible reasons for this.
The BLS found that wages and salaries rose by 4.1% in the 12-month period ending in June 2024.
They also rose by 4.6% in June of last year.
While many Americans still struggle financially, this has freed upsome extra cashin many peoples budgets.
Directly tied to higher wages is greater spending.
More consumers are splurging on high-quality, specialty food items.
This includes organic foods, which generally cost more than their nonorganic counterparts.
Before the pandemic, American consumers were starting to spend less on food.
This is the highest percentage its been since 1991.
This increase in spending has stuck since then, and could continue to set the trend going forward.
An estimated 45% of consumers experienced food insecurity due to these higher prices.
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