Opinion: November 20, 2021. Will Food Inflation Continue into 2022?

Currently, the inflationary process affecting the United States has affected the food prices significantly. People who go to the grocery stores have noticed that in order to get the same items they used to get, they have to spend more and if they want to spend the same as before, they will have less items to buy. The government officials say that the process is transitory. However, there are indicators that it may not be the case

Food prices depend on energy prices. Oil prices are predicted to stay high during 2022. The winter will show how certain fuels will increase their price. Fertilizer, essential for agriculture, depends of the oil price. Transportation costs will be higher. In addition to all this, labor shortages associated to the COVID-19 pandemic and the vaccination requirements are increasing the cost of food. Finally, international inflation (which is usually worse than in the United States) will cause imported products to be more expensive.

This post is intended to only raise awareness. In order to make actual financial decisions please contact your financial advisor and/or tax advisor prior to making the decision.