Low retail inflation holds for fruits and vegetables
In a year that has seen double-digit increases in demand for fresh produce at supermarkets, the U.S. Department of Agriculture projects that retail prices for fruits and vegetables will come in below historical averages.
“Consumer Price Index growth for fruits and vegetables has been lower than the 20-year average of 2%,” according to the USDA’s Oct. 23 Food Price Outlook.
Current projections, according to the USDA, indicate that retail prices will continue to grow slower than the historical average.
“This aggregate decline is driven by a 0.5% drop in the price of fresh vegetables,” the report.
No growth and a 0.1% increase in the price of fresh fruits and processed fruits and vegetables only partially offset the decline of fresh vegetables, the agency said.
So far in 2020, compared to 2019, overall grocery prices have increased 3.4%, while restaurant prices have climbed 2.8%. Forecast for the full year, overall 2020 grocery prices are expected to increase between 2.5% and 3.5%, while restaurant prices are projected to rise between 2% and 3%.
For 2021, the USDA said overall grocery prices will increase between 1% and 2%, while restaurant prices are expected to increase between 2% and 3%.