Weekly Wisdom | Food Fight
The Battle Against Food Inflation
The scariest number facing the Trump administration should be 38.9%, which is the month-to-month (June to July) increase in wholesale prices for fresh and dry vegetables. Although grocers and big retailers like Walmart may eat some of these increases, consumers should expect to see their grocery bills continue upward. Along with housing, healthcare, and transportation, the cost of groceries is among the most important political and economic topics of our time. As a result, we are all better off knowing some additional facts about the U.S. agricultural industry and its effects on our pocketbooks.
Learn more below:
The average American household spends about 12.9% of total expenditures on food, which ranks third in expenses behind housing and transportation.
From January 2020 to July 2025, the cumulative inflation rate has been 25.2%. For the same period, cumulative food inflation has been 26.2%, slightly outpacing overall inflation.
But not all foods are created equally. Eggs, a critical food staple, have increased by a ridiculous 117.7% (2020-2025)!! Beef has risen by a more modest 34.4%. Nonetheless, the unacceptably high inflation in these two foods has added to the financial strain on the standard American household.
Not surprisingly, food bank data shows a 50%-60% increase in usage from pre-COVID-19 (2019) to the present day. The percentage of food-insecure Americans has increased from 10% of households (2020) to approximately 15% present day.
Total U.S. agricultural expenditures have many sources. Animal-related expenses, labor, farm services, and feed each constitute between 10% to 15% of total costs. Fuel, surprisingly, represents just 3.2% of agricultural expenditures, while feed costs are the highest input at 15.3%.
Lowering agricultural costs is imperative for the Trump administration’s future success. Pro-energy policies, opening up foreign markets for our products (see Namibia), not deporting non-criminal migrants, and investing in containing deadly agricultural diseases are steps in the right direction. But tariffs could exacerbate the already-high prices Americans are facing at the grocery store.
According to a recent Associated Press poll, 86% of Americans consider the cost of groceries to be at least a minor stressor. In comparison, 53% say it is a substantial cause of their current anxiety. President Trump’s approval numbers are trending downward, and the cost of groceries — and especially the costs of staples like eggs, beef, dairy, and vegetables — is a significant reason. While President Trump has made decent progress on inflation, appointing an affordability czar seems more and more necessary.
