Grocery prices may have eased earlier this year, but that relief is fading. The USDA’s Economic Research Service now forecasts a 2.2% to 3.7% increase in “food-at-home” costs for 2025, with several staples already on the rise.
Eggs and Beef Leading the Charge
Despite a brief decline—egg prices fell 10.8% from May to June—they remain about 27% higher than last year due to ongoing avian flu outbreaks. Beef is also feeling the pinch, with prices climbing more than 10% year over year as ranchers grapple with feed costs and herd reductions.
More Price Pressures Coming Your Way
New U.S. tariffs on imported goods are expected to push up costs for tropical fruits like bananas and pineapples, as well as seafood, coffee, olive oil, chocolate, and nuts. These tariffs—ranging from 10% to 50%—hit major suppliers such as Brazil, Colombia, Vietnam, and parts of the European Union.
Tariffs Could Fuel Broader Food Inflation
Experts warn that the combination of trade barriers and higher production costs could add thousands to annual household expenses. According to Food & Wine, the ripple effects may reach domestic items like pasta and frozen meals, as supply chains absorb increased transport and raw material costs.
What You Can Expect at the Store
- Dairy Alternatives: Milk and cheese prices are nudging upward, as noted in farmdocDaily’s May inflation update.
- Staples: Items such as canned goods and frozen dinners are creeping up in price, with economic analysts recommending bulk buys and store-brand swaps.
- Coffee & Chocolate: Tariff-driven hikes on cocoa and coffee beans are already visible in retail prices, according to EatingWell.
The Bottom Line
While inflation may not be as steep as in 2022 or 2023, rising costs for everyday essentials—from eggs and beef to imported treats—are making a comeback. Strategic shopping, seasonal produce, and brand flexibility will be key to keeping your grocery bills in check this year.
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