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Goldman Sachs predicts prices of groceries will increase by 5% or 6% this year

Economists are predicting food prices will go up even more this year by 5 to 6%.

News 12 Staff

Feb 9, 2022, 10:40 AM

Updated 860 days ago


Many Americans have noticed the cost of their grocery bills going up. And experts say that they should be prepared to spend even more in the future.
Economists at Goldman Sachs say that grocery store prices will increase by another 5-6% this coming year.
“I’m retired, so I have to keep an eye on what I spend. But life is what it is,” says Lenny Dobis, of Scotch Plains.
Americans are already spending 6.5% more on groceries than they were at this time last year. The increases are being blamed on higher labor costs, supply chain issues and rising expenses for farming.
It is not what shoppers outside Trader Joe’s in Westfield want to hear.
“I’d like to say we’d get raises to compensate for the price of things going up, but I don’t see that happening,” says Andi Hayward, of Green Brook.
Karol Flynn, a food and agriculture analyst with Wells Fargo says that Americans shouldn’t panic just yet.
“The world has changed, and we have to get used to what it is,” she says.
Flynn says that she expects prices on protein foods like meat will continue to rise. But she says other items won’t. She says she hopes this will balance out the bottom line. She trusts consumers and sellers will continue to adjust and be creative to keep the costs down.
“Look for more private labels, look for fantastic products under different labels. Brands are being very innovative with product profiles too,” Flynn says.
She says that she believes this will translate into bargains or at least more affordable options on store shelves.
Wells Fargo also released its annual “Super Bowl Food Report” to give everyone a better idea of how the increase will impact Super Bowl celebrations. The report states that it will cost 8-14% more to host a Super Bowl party this year than in 2021. More information about the report can be found HERE.

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