Will shoppers pay more for groceries in 2016? That’s coming up on This Land of Ours.
This Land of Ours – Food Prices 2016
Last year at this time, Food price Economist Ann Marie Kuhns predicted that grocery store food prices in 2015 would go up by 2 – 3 percent.
However, prices only went about about 1-point-two percent – with an unusually strong dollar – making imported foods much cheaper along with an unexpected drop in oil prices. This year, Kuhns is predicting a 2 – 3 percent food price hike for 2016. Based on things like, food price trends heading out of last year – USDA projections on farm level prices for products.
“We also take a look at prices for other things that are factors for production such as cost of transportation, price for oil or diesel, food processing costs, and we also look at retail grocery store wages to account for retail overhead costs.”
Those factors are leading Kuhns to project a two to 3 percent food price hike. But it’s early and as we saw last year unexpected things happen. I’m Cathy Isom.