Bank of America expects huge rise in food prices to prolong in U.S.

Bank of America analysts expect U.S. food inflation to hit 9 percent by the end of 2022.

Americans are already experiencing some serious sticker shock at grocery stores, but they had better get used to it — the inflation rate for food is expected to continue its historic rise through the end of the year, according to the Bank of America.

“That’s not exactly surprising considering food inflation saw its largest annual increase in March since 1981 — rising at 8.8 percent year over year — but things may get even worse,” said U.S. business magazine Fortune on Thursday in its report of the bank’s prediction.

Bank of America analysts, led by Alexander Lin, said in a note that they expect U.S. food inflation to hit 9 percent by the end of 2022.

 Rising prices for staples like bread, milk and meat should continue this year as the price shock from the Russia-Ukraine conflict hits American grocery stores, said the Fortune report.

Bank of America’s analysts noted that farmers have been grappling with rising costs like never before. The cost of agricultural chemicals, including fertilizers and pesticides, has jumped almost 50 percent in the past year alone. And the Russia-Ukraine conflict has only made matters worse, according to the report. 

Source: Xinhua