News

USDA forecasts food prices to rise nearly 3% in 2025

A food economist says August grocery prices posted the largest month-to-month increase in several years.

David Ortega with Michigan State University tells Brownfield there are still inflationary pressures impacting food costs.

“The numbers were a bit concerning, we saw the price of food, the price of groceries increase, more than half a percent,” he says.

USDA is projecting food prices to increase nearly three percent this year. In August, all grocery store food groups saw prices rise.

“Beef prices are at record highs and they’ve been increasing for a number of months now,” he explains. “In just over the past month, the price of steaks went up four percent.”

Ortega says there are a lot of dynamics influencing the trend higher and he’s closely following how trade plays a role, pointing to larger tariffs with Brazil and Mexico.

“Coffee prices have also gone up four to five percent just in the past month,” he adds. “Coffee prices today are more than 20 percent higher than they were this same time last year. Also, the price of tomatoes went up 4.5 percent just over the past month.”

USDA says prices for eggs, beef and veal, sugar and sweets, and nonalcoholic beverages are predicted to grow faster than they have over the past 20 years, while other meats, fats and oils, and fresh vegetable prices are forecast to decline.

Ortega has been named the 2025 Borlaug CAST Communication Award winner for his work communicating about agricultural science and technology.