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How inflation will affect your grocery budget for 2024

After all the egg shortages, supply chain issues, and other problems that have driven up grocery prices for the last couple of years, it’s no surprise that everyone is trying to save money on groceries. According to Bloomberg, a grocery trip that used to cost $100 before the pandemic now costs $119.27. But 2024 is a new year, and the outlook is more positive.

Let’s talk about inflation

Here’s the bad news, inflation is still going to increase prices this year. The good news, however, is that the prices are going to increase at a much smaller rate than previous years, according to the USDA. In 2022, food prices increased by 9.9%. Then in 2023, food prices increased by 5.8%. Now in 2024, all food prices are predicted to increase 1.3%. 

Unfortunately, that is still an increase. But economists have explained that small, steady inflation is actually a good thing. It means the economy is growing which means more money is moving around. If inflation was to be 0%, or if we went into deflation, that would mean we were headed for an economic recession or even a depression. And none of us wants that. 

What happened in 2023

According to Nerdwallet, the increase in food prices the last couple of years has been due to inflation, labor costs, supply chain issues, and the war in Ukraine (where 9% of the world’s wheat and 12% of the world’s corn is grown). But thankfully things like the price of eggs came back down once farmers were able to recover flock numbers from the avian flu. 

Prices that decreased the most in 2023: 

  • Eggs (-23.8%)

  • Lettuce (-16.7%)

  • Tomatoes (-7.2%)

  • Apples (-5.9%)

  • Fresh vegetables (-4.8%)

Prices that increased the most in 2023:

  • Frozen noncarbonated juices and drinks (+19.1%)

  • Food from vending machines and mobile vendors (+13.1%)

  • Uncooked beef steaks (+11.2%)

  • Uncooked beef roasts (+8.9%)

  • Beef and veal (+8.7%)

How to save on 2024 grocery prices

It looks like many of the past issues will resolve or at least decrease in the coming year. Good news for your health resolutions: fresh produce is going to be among the slowest price increases. Fresh vegetables are even slated to decrease 0.9%, according to the USDA. 

Ready to save on groceries? Make sure you use Ibotta to stay ahead of inflation. As one of the best ways to earn cash back, it can really help soften the blow on your grocery bill and help you get the products you want.

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