USDA Friday increased its forecast for overall food price inflation in 2020 to range of 2.5% to 3.5%, up from their prior outlook of an increase of 2% to 3%. Their outlook for food away from home (restaurant prices) also rose to 2% to 3% versus a prior outlook for an increase of 1.5% to 2.5%.
“Prices have been relatively slow to retreat from the highs reached as a result of the pandemic, so some forecasts have been revised upward this month,” USDA's Economic Research Service (ERS) said.
USDA still sees 2020 food at home (grocery store) prices rising 2.5% to 3.5% in 2020.
Their outlooks for 2021 food prices were left unchanged from their outlook issued in August.