Food price forecast for rest of 2025: What’s getting cheaper and what’s not

As millions of Americans continue to feel the pinch at their local grocery store, a recent report from the U.S. Department of Agriculture doesn’t provide much hope for relief. The forecast indicates that prices are likely to continue to increase for the remainder of the year, despite recent price decreases in some categories.

Overall food prices increased moderately in July 2025, rising 0.2 percent from June and showing a 2.9 percent increase compared to July 2024, according to new data from the USDA Economic Research Service.

The increase largely mirrors the broader economy’s inflation rate, with the Consumer Price Index also rising 0.2 percent month-over-month and 2.7 percent year-over-year.

Beef prices showed the most significant increase among food categories, jumping 2.5 percent from June to July—the seventh consecutive monthly rise. Beef and veal prices are now 11.3 percent higher than a year ago, driven by a shrinking U.S. cattle herd that began in 2019 despite strong consumer demand.

Meanwhile, egg prices continued their downward trend, falling 3.4 percent between June and July. This marks the fourth straight month of declining egg prices, though they remain 16.4 percent higher than July 2024. The price decreases follow reduced cases of highly pathogenic avian influenza (HPAI) that had previously disrupted egg production.

Looking ahead, the USDA forecasts overall food prices to rise 2.9 percent in 2025, with grocery store prices expected to increase 2.2 percent and restaurant prices projected to climb 3.9 percent.

Some specific categories are predicted to see more substantial increases:

Beef prices are forecast to rise 9.9 percentEgg prices could increase 24.4 percentSugar and sweets are expected to go up 4.7 percentNonalcoholic beverages may rise 3.6 percent

Fresh vegetable prices, which increased 1.7 percent from June to July, are actually predicted to decrease slightly by 0.8 percent over 2025 as a whole.

Generative AI was used to produce an initial draft of this story based on data from the USDA. It was reviewed, edited and expanded by MLive staff.