Food prices are too damn high; here’s what can bring them down

Rising food costs have become one of consumers’ biggest headaches. For many, it’s turned into a full-blown crisis.

In August, home food preparation costs and dining out prices were up 13.5% and 8% from last year, respectively.

Some of the highest increases in food costs: eggs (39.8%), chicken (16.6%) and flour (23.3%).

Why are food costs so ridiculously high?

• Avian bird flu outbreak impacted the supply of chicken.
• Ukraine war sent wheat, soybean and other food commodity prices up.
• Crop damage from severe droughts across the globe.

Europe’s drought is the worst in 500 years. In India — which accounts for 40% of the global rice trade — rice planting has fallen 8% this season from a lack of rain.

When will food prices go down?

That’s the question on everyone’s mind, but luckily, we’re already seeing signs of falling food prices.

The U.N.’s Food Prices Index — which tracks the prices of five breadbasket staples — cereals, vegetable oil, dairy, meat and sugar — has fallen for five consecutive months.

Here’s what could continue lowering food prices:

• Ukraine has reopened its shipping ports under a July deal with Russia to unblock grain exports.
• Transport (i.e., shipping and gasoline) costs are falling. These costs make up one of the largest portions of food costs.

But we’re not out of the oven yet.

• Bad weather conditions could send prices soaring before the harvesting season ends.
• Global warming could continue to impact food costs.

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