Food inflation expectations and estimates both dropped last month to their lowest levels since January 2022, according to the July 2024 issue of the Consumer Food Insights Report (CFI).

The survey-based report out of Purdue University's Center for Food Demand Analysis and Sustainability (CFDAS) assesses food spending, consumer satisfaction and values, support of agricultural and food policies, and trust in information sources. Purdue experts conducted and evaluated the survey, which included 1,200 consumers across the U.S.

The consumer price index (CPI) measure of annual food inflation remained unchanged at 2.2% for the fifth month in a row. The CFDAS survey asked consumers to estimate how much food prices have increased over the last year and their expectations for the coming year.

"Consumers estimate food inflation at 5.4%, higher than the CPI estimate but a decrease from last month," said the report's lead author, Joseph Balagtas, professor of agricultural economics at Purdue and CFDAS director. "Consumers also expect food prices to be 3.2% higher 12 months from now. This also decreased from last month. Both the inflation estimate and expectation are the lowest they have been since the inception of the CFI survey in January 2022."

"There are a couple of perspectives to consider when looking at the evolution of food inflation and inflation perceptions," Balagtas said. "On the one hand, cumulative inflation over the past several years has left prices much higher than they were."

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