Although inflation which jumped to 9.1% in June The cost of everyday goods is rising, and consumers feel a great deal of pain when it comes to buying food.
According to the Consumer Price Index (CPI) – a broad measure of the price of everyday goods – food prices have outpaced overall inflation, rising 10.4% in June from a year ago. This takes into account the food at home and in restaurants.
Home food inflation, which represents food purchases from grocery stores and supermarkets, rose to 12.2%, confirming that consumers do not get much comfort by trying to cook at home.
The US Department of Agriculture (USDA) It recently raised its forecast for food price increases for 2022. The agency now estimates that all food prices will rise between 8.5% and 9.5% in 2022. Food prices away from home are expected to rise 6.5% to 7.5%, and from Household food prices are expected to grow by 10% to 11%.
Catherine Cullen, director of industry and consumer insights at the National Retail Federation — the nation’s largest retail group — told FOX Business that multiple variables are currently affecting the cost of food.
This includes the war in Ukraine, constant shortage In the labor market, fuel costs, droughts and other natural disasters are in the main markets where wheat and corn are obtained. These factors drive up the costs of products that rely on those elements as well as the cost of animal feed, according to Cullen.
Aside from natural disasters, Cullen noted that outbreaks of bird flu have driven up the cost of poultry and eggs.
Meredith Wilson, CEO of Emergent Risk International, an intelligence and strategic advisory firm, told FOX Business that food price inflation, which relies on energy price inflation, is particularly harmful to families because costs accumulate with each step along the supply chain.
“Inflation builds up as it makes its way through the supply chain,” Wilson said. “Ultimately, the products they buy in the store are a triple whammy — inflation pricing all inputs and costs before they reach them — the consumer,” Wilson said.
For people on a tight budget, these price increases “can be very challenging and lead to cutting back on healthy foods and products, which tend to be more expensive, causing them to buy lower quality, less nutritious foods,” she said.
Increasing levels of food and fuel inflation affect how customers spend.
until Walmart, based in Arkansas The nation’s largest retailer realized that rising costs for necessities for things like food and gas were causing shoppers to fall back on discretionary goods.
“Increasing levels of food and fuel inflation are affecting how customers spend,” Walmart CEO Doug McMillon said in Monday’s earnings report.
To see how food prices have changed, FOX Business has broken down the cost increases for popular dinner items using CPI data:
- Rice: Prices rose 11.9% in June
- Bread: 10.8%
- Meat: 8.2%
- Beef and veal: 4.1%
- Pork: 9%
- Poultry: 17.3%
- Fish and seafood: 11%
- Fresh vegetables: 6.5%
- Frozen vegetables: 9.8%
- Canned vegetables: 14.3%