Grocery Price Increases Likely to Continue

The Consumer Price Index (CPI) has identified significant increases in some grocery components. Egg and meat prices have raced ahead of inflation and show ongoing pricing trends. While a portion of the increases can be attributed to the rapid increases in corn prices this is only part of the issue.

America's appetite, like its population, is always changing. Foods once favored are now rarely eaten. Foods once only dreamed about are a reality. Dining out, once thought to be luxury, is now common.

The Nation's population is wealthier, older, more educated, and more ethnically diverse than in the past. And these demographic changes are likely to become more pronounced in the next 20 years.

Consumers will continue to demand new food products, new packaging, more convenience, new delivery systems, and safer and more nutritious foods. By 2020, the U.S. population will add between 50 and 80 million people, all becoming part of the food system. Based on an increase of 50 million food customers, U.S. food expenditures are projected to rise 26 percent between 2000 and 2020; the projected increase will boost food sales of supermarkets, restaurants, fast food outlets, and other retail food establishments to over $1 trillion.