News

MSU economist provides food price outlook

A food economist says a variety of factors are leading to the highest food prices in four decades.

David Ortega with Michigan State University tells Brownfield, “The rise in food prices at the grocery store has been about 10 percent for the last five months now and I expect food prices to remain elevated in the near term through the end of the year.”

He points to prolonged supply chain challenges, higher energy prices, and Russia’s invasion of Ukraine as leading inflationary challenges.

“Prices likely won’t go back to levels prior to the pandemic because there is a general increase in prices that happens through time, but that rate of increase will return to much more reasonable levels,” he estimates.

Ortega says historically high inputs and weather challenges are likely to impact food prices longer term.