Food prices soar with no end in sight, Americans change habits

Report found 46% of Americans are either dining out less or consciously spending less when dining out.

Americans are changing their shopping habits because of soaring food prices. And disruptions in the international farming community have some worried about the food supply heading into 2023.

The BMO Real Financial Progress Index, a quarterly survey from BMO and Ipsos, shows that 42% of surveyed adults “are changing how they shop for groceries,” including “opting for cheaper items, avoiding brand names and buying only the essentials.”

The report found “46% are either dining out less or consciously spending less when dining out.”

Record high energy costs and Russia’s invasion of Ukraine have been major factors in rising food prices.

Gas prices hit new record highs every day in the past week. According to AAA, the national average gas price rose to $4.85 on Sunday, with diesel gas prices at their own record of $5.64 per gallon.

That added cost makes it more expensive for farmers to operate equipment, transport goods to market, and more.

“By the economics textbook, higher costs work themselves up through the supply side of the market and raise prices,” said Roger Cryan, chief economist at the American Farm Bureau Federation. “The prices are especially high right now because of the sudden lack of access to Black Sea grain, but if these energy prices stay high in the long run then they will entirely work their way into food prices.”

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