While inflation – which rose to 9.1% in June – is pushing up the cost of everyday goods, consumers feel a lot of pain when buying food.
According to the Consumer Price Index (CPI) – a broad measure of the price of everyday goods – food prices have been higher than headline inflation, rising 10.4% in June compared to a year ago. This takes into account food at home and in restaurants.
Inflation for home food, which accounts for food purchases in supermarkets and supermarkets, rose even higher to 12.2%, underscoring that consumers don’t get much reprieve from trying to cook at home.
The United States Department of Agriculture (USDA) 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% by 2022. increase by 6.5% to 7.5%, and home food prices are expected to increase by 10% to 11%.
Katherine Cullen, the senior director of industry and consumer insights for the National Retail Federation — the nation’s largest retail group — told FOX Business that there are currently multiple variables influencing the cost of food.
This includes the war in Ukraine, ongoing labor shortages, fuel costs, droughts and other natural disasters in key markets where wheat and maize are extracted. Those factors drive up the cost of products that depend on those items, as well as the cost of animal feed, Cullen said.
Natural disasters aside, Cullen noted that an outbreak of bird flu caused the cost of poultry and eggs to rise.
Meredith Wilson, chief executive officer of strategic intelligence and consulting firm Emergent Risk International, told FOX Business that food price inflation, which is piggybacking on energy price inflation, is hitting families especially hard as costs pile up at every step of the supply chain. .
“Inflation is piling up as it makes its way down the supply chain,” Wilson said. “Ultimately, the products they buy in the store are a triple blow — pricing inflation for all inputs and costs before it gets to them — the consumer,” Wilson said.
For those on a budget, these price hikes can be “very difficult and lead them to cut back on healthier foods and products, which are usually more expensive, causing them to buy lower-quality, less-nutritional foods,” she said.
Even Arkansas-based Walmart — the nation’s largest retailer — acknowledged that rising costs for supplies for things like food and gas were driving shoppers back to discretionary items.
“Rising food and fuel inflation is impacting the way customers spend,” Walmart CEO Doug McMillon said in an earnings report Monday.
To see how much food prices have changed, FOX Business has broken down the cost increases for common dinner items using CPI data:
- Rice: prices increased by 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%