Walmart Just Announced a Major Prediction for Grocery Prices in 2025

Ashia Aubourg
·2 min read
Keizer, Oregon, USA - February 4, 2022: Logo sign over entrance to Walmart store.
Credit: Lynn Watson/Shutterstock Credit: Lynn Watson/Shutterstock

Shoppers have felt the brunt of rising grocery costs for a few years, and despite inflation declining, many people are not seeing any cuts to their food shopping bills. Grocery prices were even a major issue during the 2024 U.S. presidential election. With no signs that the conversation will go away anytime soon, big players in the grocery business, like Walmart’s CEO, are shedding more light on what shoppers should expect for 2025, and it’s not looking bright.

During the 2024 Morgan Stanley Global Consumer and Retail Conference on December 3, Doug McMillon, CEO and president of Walmart, shared a dim view of predictions about grocery prices. “I’m disappointed to see food inflation start to tick back up,” McMillon said. He noted that eggs and dairy are the primary drivers of recent inflation, but McMillon had some slightly positive news there. “Eggs and milk will adjust faster than dry grocery categories would, for example,” he added.

The outlook isn’t all good, though. When asked if consumers will see “food price inflation in ’25,” McMillon said that the year would be “starting off that way.” While he hopes shoppers can see some relief soon, certain categories aren’t primed for big price drops.

“It feels to me that processed food doesn’t go back down to pre-pandemic levels and may not come down much during the course of this next year,” McMillon said. To give shoppers a little bit of hope, McMillon added, “I don’t know what the whole year is going to look like, but I hope — and I think it could be better — as these commodities adjust.”

Walmart has been keeping an eye on grocery prices, and McMillon announced in a February 2024 earnings call that the company would be working to lower the costs of certain food and household staples. This immediately went into effect, with French bread returning to $1 and rotisserie chicken decreasing by $1. 

McMillon pointed out on the call that enrollment in the company’s Walmart+ memberships has begun to increase and that “General Merchandise” prices in the store have dropped. But if you’re waiting for grocery prices to come down further, you shouldn’t expect to see drastic price cuts in 2025.

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