Grocery Prices Are Finally Expected to Cool This Year. Just Not for These Staples

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Grocery Prices Are Finally Expected to Cool This Year. Just Not for These Staples By: Adam Hardy Adam Hardy Lead data journalist | Joined October 2021 Adam Hardy is a lead data journalist at Money, where he frequently reports on financial barriers that affect low-income Americans. Adam’s work has also appeared in Business Insider, Forbes, Nasdaq, The Penny Hoarder, Yahoo! Finance and many other outlets. Has also written: Here's How to Track Your Tax Refund This Year Trump Accounts for Kids: Who Qualifies for the 'Free Money' and How to Sign Up How to File for Bankruptcy The Benefits of 'Nepo Baby' Credit Scores Don't Last Forever, Study Finds Think Financial Planners Are 'Only for the Wealthy'? Here's Why That's a Myth See full bio Editor: Katherine Peach Katherine Peach Associate Editor | Joined January 2025 Katherine Peach is an associate editor with a focus on news and email at Money. She didn’t always intend to write about money. She’s a classically trained pianist who dreamed of becoming an archaeologist. However, in 2007 Katherine began working in financial publishing as an editor for Agora Inc. (Apparently, unearthing ideas about improving your personal finances isn’t such a bad career alternative!) Katherine’s writing and editing work has been featured in Investing Daily, Clever, Investor Junkie, The Palm Beach Letter, Truth & Plenty, Independence Monthly, NICHE, AmericanStyle, AntiqueWeek, Millennial Money, Money Done Right, TheStreet, Sure Dividend and many others. Katherine holds a Bachelor of Arts in Ancient Studies with concentrations in Archaeology and Ancient Languages and a minor in Literature from the University of Maryland, Baltimore County. She is a member of Phi Beta Kappa. Has also written: Stamp Prices Won't Rise This Month, but These USPS Shipping Costs Will Debit Card Fraud Is on the Rise. Here's What I Did When It Happened to Me New Bill Aims to 'Actually' End Taxes on Social Security Inflation's Silver Lining: The Social Security COLA Estimate for 2026 Is Up Social Security Recipients Are on Track for a 2.5% Raise Next Year See full bio Published: Feb 12, 2026 11:16 a.m. EST 4 min read Money; Getty Images After years of unrelenting price hikes, the cost of groceries is finally expected to level out in 2026, with food-at-home inflation dipping below the average. The U.S. Department of Agriculture is predicting that grocery prices will rise approximately 1.7% in 2026, marking a decrease from 2.3% in 2025 and from the 20-year average of 2.6%. This moderation comes as relief for Americans who have been watching their grocery costs inflate by more than 25% over the past five years. Much of the easing comes from plummeting prices for eggs and dairy products, which are actually expected to deflate this year, by 22.2% and 0.9%, respectively, according to the USDA. On the other hand, some grocery prices are jumping much higher than normal. Here are a few foods that didn’t get the cost-cooling memo. Ads by Money. We may be compensated if you click this ad.AdRegain financial stability with the help of Freedom Debt ReliefFreedom can start you on the path to resolve your debt, especially if you owe over $20,000. Why wait? Select your state to get started today!HawaiiAlaskaFloridaSouth CarolinaGeorgiaAlabamaNorth CarolinaTennesseeRIRhode IslandCTConnecticutMAMassachusettsMaineNHNew HampshireVTVermontNew YorkNJNew JerseyDEDelawareMDMarylandWest VirginiaOhioMichiganArizonaNevadaUtahColoradoNew MexicoSouth DakotaIowaIndianaIllinoisMinnesotaWisconsinMissouriLouisianaVirginiaDCWashington DCIdahoCaliforniaNorth DakotaWashingtonOregonMontanaWyomingNebraskaKansasOklahomaPennsylvaniaKentuckyMississippiArkansasTexasGet Started Red meats The USDA expects prices to jump for all meats — including seafood and poultry — by 4.3% in 2026, higher than the average of 3.1%. Looking closer, a few specific types of red meat are largely to blame. Beef and veal prices are predicted to soar 9.4%, while the cost of other meats like processed cold cuts and hot dogs will rise 4.3%. Meanwhile, fish and seafood prices are expected to increase by a lower-than-average 2.4%. Pork may get 0.3% cheaper. Beef, in particular, has been stubbornly expensive lately. Analysts say farmers have been dealing with droughts, high interest rates and shrinking herds, causing prices to soar. Sweets Got a sweet tooth? I have some bad news for you. Sugars and sweets, such as candy, cookies and other desserts, are in line for big price hikes. The USDA says the cost for these types of items will go up 6.7%, more than doubling the historical average of 3.1%. According to the World Economic Forum, climate-change induced droughts are affecting sugar production overseas, and at home, the U.S. maintains a longtime trade policy that restricts the amount of sugar food companies can import. Both factors are pushing prices up. Non-alcoholic drinks Juices, coffee, teas, sodas and other drinks are about to get more expensive. The USDA categorizes these broadly under “non-alcoholic beverages” and estimates that prices will rise 4.2% this year. Historically, prices for these drinks tend to increase 2.4% annually. Last year, they rose 3.8%. Other foods The USDA tracks the prices of 15 subcategories of foods. These largely consist of meat, dairy, eggs, fats, oils, fruits, vegetables, sugar, sweets, cereals, bakery products and non-alcoholic beverages. Groceries such as condiments, spices, sauces, snacks, bars and other products that don’t fit into the above categories are simply labeled as “other foods.” Combined, prices for these types of groceries are estimated to increase 3.1% this year — much higher than last year’s 0.9% as well as the historical average of 2.4%. PepsiCo, the maker of Lay's, Doritos and other major snack brands, is trying to buck that trend. Earlier this month, the company said it is cutting the price of many snacks by up to 15%. Ads by Money. We may be compensated if you click this ad.AdDon't overpay for Car Insurance. Compare rates today!Save up to $793 a yearGet Started More from Money: Here's How Low Inflation Would Be Without Trump’s Tariffs, According to New Research Trump Accounts for Kids: Who Qualifies for the 'Free Money' and How to Sign Up Can AI File Your Taxes? More Importantly, Should You Let It? SHOWHIDEAds by Money. We may be compensated if you click this ad.AdIf you owe over $20,000 or more, Freedom Debt Relief can help you get back on your feet!Get Started