Rising inflation continues to strain American households, and stubbornly high prices have been especially evident for shoppers at the grocery store.
A jump in inflation in September was partly fueled by rising food prices, according to a Consumer Price Index report released on Thursday. Overall inflation rose 8.2 percent from a year ago, driven by gains in food, rent, and medical care costs.
In September, food prices rose 11.2 percent compared to a year ago and 0.8 percent from the month before. Everything from meat and cereal to fruits and vegetables grew more expensive. Food prices at restaurants also climbed 0.9 percent from the month before, while food at home increased 0.7 percent.
Food has become more expensive for a range of reasons. Increased gas prices and labor shortages have driven up costs for businesses. The war in Ukraine has disrupted exports of wheat, sunflower oil, and other produce, straining the global food supply and pushing up prices. And climate-related issues, such as a drought in the Western portion of the United States, have lowered crop yields.
“Spikes in costs due to labor, production disruptions, transportation demands, and global conflict are affecting every aspect of the food business,” Andrew Harig, the vice president of tax, trade, sustainability, and policy development at The Food Industry Association (FMI), said in a statement after the CPI report’s release. “Today’s numbers make it clear that there is still work to be done to address these issues.”
Supply chain disruptions, war, and drought have driven up prices
Food prices have spiked for many reasons during the pandemic, but they first started to rise because of increased demand.
Gregory Daco, the chief economist at EY-Parthenon, said that food prices began to rise earlier in the pandemic as people stocked up on food from the grocery store, leading to a jump in demand. Restaurant prices also picked up as more businesses reopened and consumers felt increasingly comfortable dining out. Since then, supply constraints have put additional pressure on food prices, Daco said.
