Through Dec. 31, 2021, inflation rose to its highest level since 1982, with the consumer price index (CPI) jumping 7%. Rising food prices were one of the most significant contributors to this inflation surge. And because food prices are expected to continue rising, grocery store operators should see increasing revenues, considering the near-inelastic demand for groceries.
According to research firm IRI, food prices are estimated to rise 5% in the first half of 2022. Persistent supply chain disruptions and labor shortages should drive prices higher.
