Americans Estimate Food Inflation at a Higher Rate Than CPI, Purdue Survey Finds
Key Findings
* Consumers estimate food inflation is 54% higher than the CPI estimate. * Affording food is difficult for over one-third of Gen Z and millennials. * 80% of consumers perceive food prices have increased. * 64% of consumers predict food prices will rise in the coming year. * The USDA predicts food away-from-home prices to increase by 5% and food-at-home prices to increase by 7.4%.
Purdue Survey Findings
A recent survey conducted by Purdue University's Center for Food Demand Analysis and Sustainability included 1,200 consumers across the US. The survey found that consumers estimate food inflation at 54% higher than the CPI estimate of 10.4%, indicating a significant discrepancy between consumer perception and official inflation data. Consumers are reporting difficulty affording food, with over one-third of Gen Z and millennials struggling to make ends meet. More than 80% of consumers perceive that food prices have increased substantially, highlighting the widespread impact of food inflation. The survey also revealed that consumers are managing inflation in food prices for now, but their expectations for the future are concerning. 64% of consumers predict food prices will rise in the coming year, with an expected inflation rate of 37%. This aligns with predictions from the USDA, which anticipates a 5% increase in food away-from-home prices and a 7.4% increase in food-at-home prices. The report emphasizes the need for continued monitoring of food inflation and its impact on consumers, particularly vulnerable populations such as Gen Z and millennials.
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