(TotalConservative.com) – Food prices are still expected to spike next year, but a new report claims it will be less dramatic than the inflation for 2023. The 2024 increase in food costs is forecasted at 2.9% which is half of the 5.8% increases seen during 2023.
The news comes at a terrible time for the U.S. economy which hasn’t regained its strength after being artificially restrained during the pandemic in 2020-21. Inflation has struck everything across the board due to the tendency of U.S. financial wizards at the Federal Reserve to print more money.
It’s been estimated that 40% of all dollars in existence were conjured from thin air in the post-pandemic period to pay for all the programs and welfare required. All costs of living have gone up including utilities payments, housing costs, and gasoline.
Gary Millerchip is the CFO of Kroger Foods and he said that they anticipate a lot of cooking at home next year with the cost of those foods to remain relatively stable in 2024.
Inflation hit a 40-year high in June 2022 of 9%, this past October the number has slipped to 3.2% demonstrating a trend toward normalcy. The Fed deployed a series of rate hikes to curb inflation, but the move made loans much less available restricting purchasing power for things like new cars, homes, or investment.
The Fed has been trying to get inflation down to just 2%, and likely won’t adjust the rates until then. Thankfully the trend is heading downward so with enough time and barring any unforeseen disasters, the rate should return to a normal level.
KPMG’s chief economist Diane Swonk said the worst of the rate hikes should be behind us. She anticipates that the next time they tinker with the rates, it’ll be to cut them to free up capital. The Fed previously declined to adjust the rates for its past two meetings and is anticipated to leave them the same after its December meeting.
The impact of the rates on American’s ability to buy homes is obvious with the market being more restrictive for first-time home buyers than it’s been in recent years.
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