Agriculture experts say grocery store Prices could ease in the New Year early Predictions say the cost of items like Sugar coffee corn are set to decrease After a three-year surge so joining me Now is Dominic reuer he's a senior uh Reporter with Insider uh Insider retail Desk so this is some good news uh We've Getting a lot of crappy news Particularly about your grocery bill how It's going to cost you more for your Size at Thanksgiving there's all kinds Of stories on this but tell us you know What's going on what is What is driving the predictions that we Will see a market shift in the new Year um thanks for having me hry and I I Think that there's quite a few things That are driving it um some of the the Biggest thing is that I think that Supply is finally starting to sort of Catch up with demand and that you Probably heard a lot about that in the Last couple years of there's too much Demand and not enough Supply that's Really what drives prices to go really High but uh some of those things that Have gone into those uh sort of food Inputs have started to stabilize Um and build back up and that has really Enabled some of these what we call dry Grocery categories to start to uh level Off and even in some cases dip back down So then what falls into those dry
Grocery categories where are we going to See the biggest changes so some of the Ones that you mentioned already right Coffee corn sugar um those things go Into a lot of other food that we eat and It also gets turned into the food that We eat in terms of dairy and meat and so Forth so all of those things work Together and flow through the system um What's particularly interesting here is That you know yesterday on the earnings Call with Walmart uh CEO Doug McMillan Said that that company was expecting to Start to see price deflation which is a Weird thing for an executive to say I'll I'll tell you um so so that that raised Some ears and then and deflation is what It sounds like it's sort of the opposite Of Inflation yeah that's definitely good News especially for people at big Families cuz man those grocery bills can Get quite large um are there products Though that we could potentially see Increase next year and if if that's the Case what would be driving those Products because I understand when we're Talking about Foods I mean there are all Sorts of sort of X factors in including Mother Nature that could shift Everything for Us nature is a big one and so the Biden Administration actually came out I Believe yesterday or earlier this week
About a a piece talking a report an Annual report talking about sort of the Climatological impacts uh that that Americans are going to economically and And weather is going weather and climate Is going to continue to put pressure on Our grocery Bills going forward in the Near term that can dip that can soften a Little bit but most things are uh at Least from the from the government's Perspective going to get more expensive In the longer term but in the next Couple of months we could get some Relief which is certainly going to be a Welcome thing for a lot of households I'd also add that deflation is not a Very great thing that that policy makers Want to see deflation we us talk about Trying to keep inflation under control Un positive but within a limit and Deflation is just something that a lot Of policy makers and businesses try to Avoid because it is it is it is just a Whole other can of worms that that Policy makers have to try to address I Can imagine I can see how it's the ying And the Yang deflation and inflation how One can follow the other um Dominic Reuer thank you so Much thanks for your time memory
