The 2024 presidential candidates from both major parties have prioritized food price inflation as a key campaign issue, though their explanations about the causes of higher food prices seem to overlook the lasting effects of the COVID-19 pandemic on food supply chains and global inflationary pressures. During the pandemic, food prices for consumption at home increased sharply but have since moderated, increasing at only about 1 percent annually since 2022 and more slowly than the general inflation rate. Prices for food away from home have followed a similar path but are now increasing at about 3 percent a year. The share of income spent on food increased modestly during the pandemic for all households, but by much less than some commenters suggest, even for low-income households, which only modestly increased the share of their income spent on food by 1.3 percentage points.
Authors
- Pages
- 16
- Published in
- United States of America
Table of Contents
- Key Points 1
- The 2024 presidential candidates from both major parties have prioritized food price inflation 1
- During the pandemic food prices for consumption at home increased sharply but have since 1
- The share of income spent on food increased modestly during the pandemic for all households 1
- The Evolution of Food Prices Before During and After the Pandemic 2
- Figure 1. The Food-at-Home Index and CPI January 2011June 2024 3
- Figure 2. Food-at-Home and CPI Rates 201124 3
- Why Food Prices Have Increased 4
- Figure 3. The Food-away-from-Home Index and CPI 201124 4
- Figure 4. Food-away-from-Home and CPI Year-over-Year Inflation Rates 201124 5
- Figure 5. Food-at-Home Price Index and Hourly Convenience Store and Supermarket Hourly Wage Index January 2008June 2024 6
- Figure 6. Food-away-from-Home and Hourly Wage Indexes for Full- and Limited-Service Restaurant Workers January 2008June 2024 7
- Figure 7. US Average Retail Gasoline Prices for All Grades and Formulations per Gallon January 2017August 2024 8
- Figure 8. Food-at-Home Index and PPI January 2011June 2004 9
- Figure 9. Global Food Price Inflation in 2023 10
- Spending on Food by Income Group 11
- Figure 10. Median Profit Margin of Food Companies 11
- Figure 11. Quarterly Profit Margins for the Kroger Company 20092023 12
- Figure 12. Share of Total Expenditures on All Commodities Spent on Food by Households in Different Income Groups Quintiles 19902022 13
- Summary 14
- About the Authors 15
- Notes 15
