In Reply to: I prefer: Lowest inflation since 2021, highest real wages as posted by wwood2 on February 15, 2026 at 09:14:55
yourself off.
Grocery prices remain high despite cooling inflation because the overall inflation rate measures the speed of price increases, not a decline in price levels (deflation). While the rate of increase has slowed, elevated food costs persist due to high labor expenses, ongoing supply chain issues, extreme weather disrupting harvests, and increased costs from tariffs on imported goods.
Key factors keeping grocery prices high in 2026 include:
Labor Costs: As the largest industry expense, rising wages for workers in agriculture and supply chains continue to drive up prices, particularly with tighter immigration policies affecting labor supply.
Tariffs & Trade Policies: Import tariffs on items like coffee, bananas, and beef are contributing to higher prices at the register.
Production Costs: Expenses for farm inputs such as fertilizer, equipment, and fuel remain elevated, forcing producers to pass costs to consumers.
"Sticky" Prices: While some food prices (like eggs) may drop from peaks, others, such as beef and orange juice, have seen continued price growth due to supply constraints.