Grocery prices to rise

Bloomberg -   (Bloomberg) -- As Americans confront a surge in prices at the pump, another inflation wave is headed for the grocery store.

A combination of factors including bad weather, tariffs and a dwindling cattle herd are already pushing up grocery prices at an above-average pace. In April, they rose by the most in nearly four years, and economists say the impact of the Iran war and a potential El Niño weather pattern will only add to pressures into 2027.

The hit to US household finances from higher grocery bills is set to intensify just ahead of the November midterm elections, amplifying affordability as a defining issue. And to a greater extent than the surge in gas prices, the slower-moving food shock will be difficult to reverse quickly because the size of autumn harvests is determined by planting decisions made in the spring.

“It’s going to be a challenging year,” said Ricky Volpe, an agribusiness professor at California Polytechnic State University who previously worked at the US Department of Agriculture’s Economic Research Service. “Food is going to become less affordable, and consumers should be prepared for it.”