COLUMBUS – The rising cost of food may be causing you to reevaluate your budget and rethink your grocery shopping list.


What You Need To Know

  • The Consumer Price Index for all items increased by 4.7% in 2021, according to data from the US Bureau of Labor Statistics

  • According to the data, food prices increased by 3.9% in 2021

  • Each week, Chuck Ringwalt and Andy Vance discuss a topic of importance within agriculture

Agriculture expert Andy Vance said consumers haven't seen this much inflation in decades.

"Transportation was the biggest component of that [inflation] by far – more than 14%. And so when you look at an overall Consumer Price Index increase of 4.9%... a huge percentage of that comes from that transportation cost, but the next largest increase was food right at 3.9%," Vance said.

The outlook data for 2022 shows no signs of inflation slowing down. 

According to the USDA, researchers forecast an inflation increase of between 2.5-3.5%.

Vance explained why food prices are rising.

"[Transportation] costs affect farmers. You and I have talked before about how the rising cost of fuel, rising cost of fertilizer, any energy products are going to put a crimp on farmers," Vance said. "To some extent, some of those costs also come to consumers. And it's not because farmers are able to pass the cost on, but generally, when you see the cost of transportation, food getting from farm to retail, from retail, then to the customers, food getting from, you know, distribution, all of those costs end up in the consumer's plate eventually.

"So you're looking at a food increase this year of 2.5-3.5%. The larger share of that would be food, what is considered away from home, so food you consume at restaurants or if you go to the movie theater, if you go to a ballpark, and you buy a hot dog. Food away from home is going to increase 4-5% this year. Food consumed at home, in other words, food you buy at the grocery store, you're looking at a more modest 2-3% increase. But still, when you have had a 4% increase last year, another 2-3% increase this year, certainly, it's something that those of us who watch agricultural markets and consumers willingness to pay for food products, we're watching this really closely."