Why Food Inflation May Be Around For Longer, According To Data
Your grocery habits may not have changed, but the prices in stores sure have. Consumers have been feeling the effects of inflation over the last year. Groceries, dinners out, and even fast food costs have risen according to Forbes, leaving consumers pinching pennies in order to afford things that were cheaper just a year ago. As food costs climb, lower income communities have struggled more with affording their groceries, and people have had to adjust their shopping accordingly, reports The Washington Post.
Some foods — like cooking oils and avocados — have come down in price thanks to lower demands and higher quantities available (via CNBC). Due to a number of factors, we have seen food shortages globally, per PBS, leading to rising costs for the food that is available. Unfortunately, the latest data shows that food inflation costs may not be disappearing any time soon, so you may need to prepare to purchase necessities only the next time you take a trip to the grocery store, or you may find your bank account looking a little slimmer than usual.
Food prices keep rising
Although inflation rates seemed to slow recently, we may not be in the clear just yet when it comes to food costs. According to data from the U.S. Bureau Of Labor Statistics, the overall index for all items excluding food and energy only rose 0.3% in July; a smaller increase than the three previous months. However, food costs continued to rise. The average food at home cost went up 1.3% in July, while food away from home was at 0.7%, for an average of a 1.1% increase. They note that the food index has risen 10.9% over the last 12 months — the highest increase since May 1979.
Food Navigator USA notes that non-alcoholic beverages saw a 2.3% price hike, coffee jumped up 3.5%, and cereals as well as bakery products have faced a 1.8% increase month-over-month. The site also note that grocery costs (or food at home) rose in cost by 13.1% between July 2021 and July 2022. While overall inflation does seem to be slowing down, it doesn't look like food costs will come down any time soon.