Why Food and Gas Prices Won’t Drop Any Time Soon

Tags: Currents Economy, Media, U.S. Capitol

Currents News Staff

New federal forecasts show food prices will likely keep climbing. The average cost of gas will stay high or may even rise. The USDA now predicts grocery prices will increase up to four percent throughout this year and the average cost of dining out could set a new record.

That’s partly because Ukraine and Russia usually export a lot of the world’s wheat and corn.

“It will have global context, impact, beyond anything we’ve seen since World War II,” said U.N. World Food Programme Executive Director David Beasley.

China’s new COVID-19 lockdowns are making it hard for supply chains to recover from the pandemic. Oil prices dipped a bit this week after Russia said it would ease up its assault on parts of Ukraine.

“I think we should be clear eyed about the reality of what’s happening on the ground,” said White House Communications Director Kate Bedingfield. “And no one should be fooled by Russia’s announcements.”

Energy Secretary Jennifer Granholm said gas prices will fluctuate.

“It’s called rockets and feathers,” said Granholm, “meaning when the price goes up, price per barrel, that means your gas stations prices go up like a rocket. When the price goes down per barrel, the gas station prices come down like a feather.”

U.S. oil producers aren’t increasing drilling much to help. Company CEOs say investor pressure is retraining growth — according to a Federal Reserve Bank of Dallas survey.

“Because of gas!!!” said driver Albert Zupancic. “We are, as of right now, we are definitely not taking our family vacation this year. It will be more or less a trip to the lake.”