INDIANAPOLIS — While high prices at the grocery store (like for eggs) are nothing new to shoppers, some specific items are expected to become even pricier in the year to come.
The latest overall inflation rate flattened at 6.5%. However, the latest inflation rate on food items is at 10.4% And according to Foodmarket, anything that relies on vegetable oil for production is likely to cost more in the months ahead.
The reason is connected to the war in Ukraine. The oils we use in so many foods are made of soybeans, corn and sunflower seeds. Ukraine is the world’s 3rd largest exporter of vegetable oil and also has the biggest supply of sunflower oil. The ongoing invasion by Russia is disrupting those exports, and the effect will continue to be apparent at the store.
Items likely to be affected include:
- Fried foods
- Potato chips
- Microwave popcorn
- Packaged snacks
- Coffee creamer
The price of margarine went up more than 40% just in December, and the increase may not be over soon.
On the positive side, the price of milk could go down this year. Although cow herds have gotten smaller on average across the country, CoBANK reports that weather conditions this year could be very good for milk production. And that could help bring dairy costs down.