Experts can now confirm that after more than a year into the coronavirus pandemic, food prices are expected to increase.
The Economic Research Service for the U.S. Department of Agriculture predicted that grocery store prices would rise 1 to 2% in 2021, according to GMA.
Due to an increase in consumer demand, stores across the nation have extended hours of operation and capacity, and with the pandemic in full swing, many are choosing to eat at home rather than at restaurants. All of these changes are likely contributing to an increase in prices.
Patrick Penfield, Professor of Practice - Supply Chain Management at the Whitman School of Management for Syracuse University, said that prices “will continue to rise over the next several months, probably right at that 2 to 3% range, until May.”
“The major factors impacting costs are demand, weather issues within the U.S. and food producers and supermarkets not offering substantial discounts to shoppers,” Penfield added.
The professor also explained how prices continue to rise with so many people eating at home and how bad weather in 2021 has caused many across the United States to eat in. He said that supermarkets are not offering the coupons that shoppers have used in past years.
However, for deliveries, the Department of Agriculture says food from restaurants and deliveries rose 3.9% in 2020. Prices will increase by another 2 to 3% in 2021.
Since January 2020, the organization confirmed that the price of food eaten at home rose by 3.8%.