Food prices are estimated to rise 5% in the first half of 2022, according to research firm IRI, though the level of increases will vary by grocers and regions.
Mondelez International Inc. MDLZ 0.55% said recently that it was raising prices across cookies, candy and other products sold in the U.S. by 6% to 7% starting in January. General Mills Inc. GIS 0.19% and Campbell Soup Co. CPB -0.32% said their price increases also would take effect in January. Kraft Heinz Co. KHC -0.14% told retailer customers that it would raise prices across many of its products including Jell-O pudding and Grey Poupon mustard, with some items going up as much as 20%, according to a memo viewed by The Wall Street Journal.
The increases follow others that food manufacturers imposed in 2021, and are part of what businesses and economists call the highest inflation in decades. Higher wage, material and freight costs are prompting industries from manufacturing to retail to raise prices of goods, creating an environment in which some executives say they have room to charge more.