"For fiscal 26, we expect core cost of goods inflation to be approximately 4 percent," Connolly said. "This level of inflation in fiscal 26 will bring our five-year cumulative, net inflation to approximately 45 percent, a historic amount of inflation over such a short period of time."

SACRAMENTO, the United States, July 10 (Xinhua) -- U.S. families face mounting pressure from persistent food inflation, with grocery prices continuing to climb even as the broader economy shows signs of cooling, according to Conagra Brands, one of North America's largest packaged-food companies.

Delivering a stark warning on Thursday, Conagra's Chief Executive Sean Connolly told investors that food companies are entering "a historic amount of inflation" that will test consumers' ability to afford basic necessities.

Speaking during the company's fourth-quarter earnings call on Thursday, Connolly painted a sobering picture of the food industry's immediate future, projecting core cost inflation of 4 percent and total inflation -- including tariffs -- of 7 percent for fiscal 2026.

"For fiscal 26, we expect core cost of goods inflation to be approximately 4 percent," he said. "This level of inflation in fiscal 26 will bring our five-year cumulative, net inflation to approximately 45 percent, a historic amount of inflation over such a short period of time."

On top of that, "the current tariff environment is expected to add approximately 3 percent to our cost of goods sold, or more than 200 million U.S. dollars annually," he added.

With over 40 manufacturing facilities and 18,600 employees, Conagra's deep visibility into commodity costs, tariffs and supply chain pressures makes its inflation forecasts a bellwether for the entire sector.

Government data released in June also supported these concerns. U.S. Bureau of Labor statistics reported that food prices in May 2025 were 2.9 percent higher than the previous year, outpacing overall inflation of 2.4 percent. The pain is particularly acute for specific categories: egg prices have surged 41.5 percent year-over-year due to ongoing avian influenza outbreaks, while meat prices continue climbing due to supply constraints.

The impact extended beyond corporate balance sheets to American dinner tables. The U.S. Department of Agriculture forecasted that overall food prices would increase by 2.9 percent in 2025, with restaurant prices rising 3.9 percent and grocery prices increasing 2.2 percent. For eggs, the department predicted a 33.2 percent increase, while beef and veal prices were forecast to climb 6.8 percent.

These projections represent a significant burden for American households. With food inflation consistently outpacing wage growth, grocery shopping has become a financial balancing act. Since 2020, food prices have risen 23.6 percent, forcing families to make difficult choices between necessities and sometimes resort to credit or buy-now-pay-later services to afford groceries.

Connolly emphasized that the prolonged inflation cycle was reshaping consumer behavior, noting "The cumulative impact of inflation and economic uncertainty has led to value-seeking behaviors becoming even more pronounced."

"Given these dynamics, we recognize the importance of a thoughtful and measured approach to future pricing decisions," he said.

Industry experts have warned that the challenges ahead may be more severe than those experienced during the initial pandemic-driven surge in inflation. Unlike previous periods, where specific supply shocks drove temporary price spikes, the current environment reflects structural changes in global food systems, trade policies, and production costs, suggesting sustained pressure on food prices.