Why are grocery prices so high?

Several factors affect food prices, such as:

  • Supply chain challenges, including those related to COVID-19 and global relations such as the war in Ukraine.
  • Inflation.
  • Higher labor and transportation costs.
  • Animal disease, such as the avian flu in 2022 which impacted egg and chicken prices.
  • Extreme weather events which damage crops and affect animals.

The USDA expects grocery store prices to increase 1.2% in 2024 compared to 2023. Although the federal government can take indirect action to help manage grocery prices, it does not have a direct say in controlling price increases.