The United States will pay about $2,600 more per year to buy an average of 16 different items in 2020, a new study by the government found.
The study also found that the average price of a cup of coffee rose by more than 2.5% in the US last year, and that more than half of American households will spend more on food this year.
It found that in the third quarter of this year, the average American household will spend $2.859 more on groceries than they did a year earlier, and by the end of 2020, the government expects the average household will pay $3,062 more per capita on average to buy groceries.
“The trend is clear,” the report said.
“More Americans are spending money on groceries.”
The increase in food costs comes as many Americans are seeing their incomes drop, with the average income in the United States dropping by 1.9% in 2019 to $53,964.
The government said the rising price of groceries is not a new phenomenon, and noted that in 2015, the cost of groceries in the first quarter of the year was more than 10% higher than the same period a year later.
The increase comes amid a nationwide drop in the cost to buy goods.
In the first three months of 2019, the national average cost to purchase goods dropped to $32.80, a 17.3% drop from the same time a year ago.
The National Retail Federation said the price drop was a reflection of the overall economic outlook, with inflation in the past year rising to 4.4%, the highest in six years.
A report by the National Federation of Independent Businesses earlier this month said the cost-of-living for small businesses had not been as low as previously thought, and pointed to the lack of wage growth as the reason for the price decline.
The CPI, a measure of inflation, has been on a tear since the end to the recession, reaching a 17-year high of 2.4% in November.