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WEST LAFAYETTE, IND — Grocery prices seem to rise faster than the government reports. A study from Purdue University reveals that many people think prices are increasing more rapidly than official figures suggest, even though those numbers aren’t rising too quickly.
In the summer of 2022, food prices shot up, reaching an annual inflation rate of 11%. But since then, they’ve calmed down to levels we saw before the pandemic. Recent official data shows a 2.1% increase from last year.
However, despite this slowdown, many consumers still feel that prices are much higher than what’s officially reported.
Purdue’s Consumer Food Insights Report for February explores how consumers perceive higher food prices and food price inflation.
“It’s not just higher food prices,” said Joe Balagtas, a professor in the College of Agriculture’s Department. “Prices across the economy are higher. When your rent or housing payment rises, that leaves less money for food.”
Balagtas also mentioned that consumers often see economic data based on political beliefs.
“Among self-identified Republicans, seventy-one percent think prices will rise in the coming year,” he said. “Among self-identified Democrats, only fifty-six percent think food prices will rise in the coming year.”
