USDA has lowered its food price forecast.

Participants: Gary Crawford and Megan Sweitzer, economist.

Transcript

As we pass the halfway point in 2024, the news on the cost of food continues to improve.

Last month, the Agriculture Department was predicting that grocery store food prices would only go up an average of 1.2 percent this year.

But now...

Prices for food at home or groceries are predicted to increase by 1 percent in 2024.

Just 1 percent.

This from USDA economist Megan Switzer.

1 percent.

And that's compared to last year, prices rose by 5 percent.

And the previous year, in 2022, prices rose by 11.4 percent.

So a 1 percent hike in grocery store food prices would be a welcome thing.

But remember, this 1 percent is an average of all foods.

Megan says we're still going to pay a little more for things like beef.

But there are foods that will cost us less than a year ago, including fish, seafood, and milk and dairy products.

Gary Crawford for the U.S. Department of Agriculture.