'Consumers should be prepared': Food costs expected to soar just as voters head to polls
Americans already grappling with elevated gas prices face another inflation squeeze as severe weather, trade policy and geopolitical conflict could send consumer costs surging just before November's midterm elections.Grocery prices rose in April by the most in nearly four years, and experts warn the pressures will only worsen through 2027, when the U.S. Department of Agriculture projects a 3.2 percent increase in grocery prices and other experts warn that could rise even higher, reported Bloomberg.“It’s going to be a challenging year,” said Ricky Volpe, an agribusiness professor at California Polytechnic State University who expects grocery costs to soar by 4 percent to 4.5 percent. “Food is going to become less affordable, and consumers should be prepared for it.”The U.S. experienced its warmest start to any year on record, with temperatures running about 6 degrees Fahrenheit above average through April. The early heat prompted crops to begin blossoming prematurely instead of remaining dormant through winter, leaving them vulnerable to subsequent frosts. Meanwhile, drought has devastated agricultural regions nationwide — 70 percent of U.S. winter wheat production sits in drought areas as of mid-May, along with 25 percent of corn production.Beef prices hit record highs in April due to the smallest cattle herd in 75 years, squeezed by drought and elevated production costs. Tomato prices surged 33 percent over two months following winter storms that damaged Florida's growing season combined with declining shipments from Mexico due to Trump administration tariffs on Mexican imports.California, which supplies nearly half of U.S. vegetables and three-quarters of fruit and nut receipts, faces severe irrigation challenges after Sierra Nevada snowpack fell to just 23 percent of typical levels.The Iran war has disrupted global fertilizer markets, with North American fertilizer prices up 20 percent since fighting began, and El Niño is forecast to emerge by August with potential for unusual strength persisting into 2027, threatening additional drought in major international growing regions for rice, coffee and cocoa.The impact is already visible in household budgets, according to the report. James Giese, a 62-year-old from Madison, Wisconsin, reports cutting back on prepared foods and meat while growing potatoes in his backyard to stretch his budget. "I'm probably considered middle-income, but it's starting to pinch," he said.Consumers face additional headwinds, with household debt rising and savings rates are falling, and real average hourly earnings declined for the first time in three years through April.Food insecurity measures showed meaningful increases between October 2025 and February 2026, according to Federal Reserve data."As I've been saying: Inflation is just getting started. I think this is going to be a major theme of the next few years," commented Wall Street Journal columnist Christopher Mims. "It is not going to be pleasant, even for people with money. For people without, it's going to be (and is already) devastating."
