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2026-05-27 18:57:50
[Oil Price Transmission Not Over Yet: US Grocery Inflation Resurfaces, April's Increase Hit Nearly Four-Year High] ⑴ Just as Americans are grappling with soaring gas prices, another wave of inflation is hitting supermarkets. In April, US food prices saw their biggest increase in nearly four years. A combination of factors, including severe weather, tariff barriers, and declining cattle numbers, has led to above-average increases in grocery prices. ⑵ Economists point out that the impact of the Iran war and a potential El Niño climate pattern will continue to exert upward pressure on food prices until 2027. Ricky Volpe, a professor of agricultural economics at Caltech, says food prices will become increasingly unaffordable, and consumers should prepare themselves. The latest USDA food price outlook predicts a 3.2% increase in grocery prices this year, while Professor Volpe expects actual inflation to be around 4% to 4.5%. ⑶ The financial impact of rising grocery bills on American households is expected to worsen further ahead of the November midterm elections, making affordability a key issue in the election.
