US consumers face a fresh wave of grocery price increases as surging diesel and freight costs threaten to reignite food inflation. Packaged food giants including PepsiCo, Campbell’s and Conagra have signaled price hikes, with PepsiCo’s CEO Ramon Laguarta warning of inflation driven by energy and agricultural prices. Trucking spot rates have jumped 50% year-on-year, while inputs like aluminium, corn, soyabean oil and fertiliser are up double digits.
Food economist Ricky Volpe of California Polytechnic State University forecasts price acceleration within months, though not at 2022 levels. The USDA projects a 2.4% rise in grocery prices this year. Meanwhile, retailers like Walmart and Costco are using tariff refunds to offset costs, and discounters such as Aldi are running promotions — including chicken breast at $1.99 — to attract budget-conscious shoppers.
Some categories, like avocados, are seeing price drops. However, a Consumer Edge index shows food prices running 4% above last year, signaling persistent pressure.
Source: Financial Times Companies · Summarized by HeadlinesBriefing