Food Prices Expected to Rise Amid Supply Chain Disruptions

Food prices are expected to rise by the end of this year and into 2027 due to various supply chain factors, according to a recent briefing by FMI, The Food Industry Association.

The association's experts, including Dr. Ricky Volpe from California Polytechnic State University and Andy Harig from FMI, pointed out that while food price inflation is not expected to reach the levels seen during the COVID-19 pandemic, consumers can still expect higher prices on grocery store shelves.

Volpe noted that despite recent flat food price inflation, there are underlying factors driving up costs, including higher energy prices and supply chain disruptions, particularly in international trade. He highlighted the importance of field corn as a vital input in the food industry, pointing out that its prices have an indirect impact on retail food prices.

Harig emphasized that the price increases are a result of supply chain challenges and shocks, rather than corporate margins or business profits. He also pointed to the ongoing trade tensions with Canada, which could lead to further disruptions in the international trade environment.