U.S. food costs to rise nearly 5 pct amid record inflation: report

Consumers shop at a grocery store in Washington, D.C., the United States, March 10, 2022. (Photo by Ting Shen/Xinhua)

Wheat prices will increase between 20 and 23 percent this year and that wholesale wheat flour prices will increase between 12 and 15 percent.

NEW YORK, April 11 (Xinhua) -- The U.S. grocery store and supermarket prices will increase by another 3 to 4 percent in 2022 and are "expected to exceed historical averages and the inflation rate in 2021," the U.S. Department of Agriculture (USDA) has predicted.

The food price increases were due to rises in costs in many different food categories, such as chickens, eggs and dairy, rather than just one or a few, said the report released on Friday, adding that while the Federal Reserve's recent decision to increase interest rates will put "downward pressure" on prices, the war in Ukraine has been a major factor exerting "upward pressure" on them.

The USDA predicted that farm-level wheat prices will increase between 20 and 23 percent this year and that wholesale wheat flour prices will increase between 12 and 15 percent.

U.S. restaurant food prices are expected to increase even more than grocery store prices, by 5.5 to 6.5 percent, thus putting the total food price increase prediction at between 4.5 and 5.5 percent, according to the report.

Another factor putting pressure on the food market is a recent outbreak of avian influenza, which has caused more than 22 million chickens and turkeys in at least 24 states to be culled to keep the disease from spreading, it said.

Nearly every food category, such as fresh and processed fruits, sweets, cereals and bakery products, is expected to increase in price this year, said the report, noting that the only category that would have a lesser increase than last year was fresh vegetables, which are expected to have a 1 to 2 percent increase, compared with 2021's 1.5 to 2.5 percent.