Here’s what’s getting more expensive at the grocery store
Over the past 12 months, grocery store prices have climbed 13.1% — the largest annual increase since the year ending in March 1979, the Bureau of Labor Statistics reported Wednesday.
Prices for almost all grocery items have skyrocketed over the past year.
The cost of eggs rose 38%, and the prices of other products also jumped: flour rose 22.7%, chicken 17.6%, milk 15.6%, ground beef 9.7% and bacon 9.2%. Fruits and vegetables have become 9.3% more expensive.
As commodity prices fall, it will take time for these lower costs to trickle down to consumers. Additionally, many other costs for producers – such as fuel, labor and packaging – were also high.
And as supply has been disrupted, demand has increased.
The demand for food products is increasing
Penegor added that around 82% of meals were eaten at home before the pandemic, but that figure has jumped three percentage points since then and stayed there.
“The consumer has been a bit more cash-strapped, so there are a few more home-cooked meals,” Penegor said. “Inflation has been high, so net disposable income has been a bit pinched.”
Restaurants also increased their prices, but at a slower pace: in the 12 months to July, menu prices rose 7.6%, less than headline inflation.
Moreover, food prices are largely unaffected by current government efforts to reduce spiraling costs.
The Fed believes that “food and energy are influenced by global commodity prices in a way that tells them, ‘Hey, these things aren’t really directly under your control,'” noted Michael Gapen, head of of the American economy at Bank of America Global. To research.
Essentially, the thinking is this: because the United States cannot control international factors such as the war in Ukraine and higher shipping costs, it cannot fully control domestic food prices.
“The government doesn’t have the ability to release extra stalks of wheat, corn and cheese, etc.,” Fox said.
What became more expensive in June
The result has been a steady rise in prices in the grocery aisle, with some items seeing bigger month-to-month spikes than others.
In July, adjusted for seasonal fluctuations, the price of eggs jumped 4.3% compared to June. Coffee and peanut butter are each 3.5% more expensive. Flour rose 3.2% and bread prices rose 2.8%. Cheese jumped 2%, while chicken became 1.4% more expensive.
There was, however, some relief. Citrus fell 3.2% and whole milk 1.4%. Uncooked roast beef fell 1.3% and uncooked steaks fell 1.1%. Ham is 1% cheaper.
The biggest decline was in hot dog prices, which fell 6.1%.