Food inflation is showing signs of moderating, however Americans remained crunched at the grocery stores. Why is that? Former USDA Economist and Cal Poly Professor of Agribusiness Richard Volpe joins Wealth! to break down this situation.
Volpe points out that while food price inflation has decreased, “nominal food prices have not come down.” He identifies this as the primary source of confusion among consumers. Although overall inflation in the economy is declining, Volpe explains, “It would really be counter to the norm in the US and most developed economies to see actual nominal deflation, and that, I think, is the number one source of confusion, disconnect, and lingering frustration among many.”
He does note, however, that there is some inflation relief in certain categories. These include fruits and vegetables, breads and cereals, baked goods, and some protein sources.
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This post was written by Angel Smith
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