‘We have yet to see a peak in food inflation’: Food price increase is highest increase since 1979, and this staple is up nearly 40% on last year Food prices continued to rise in August, putting pressure on lower- and middle-income households in particular.
Food to prepare at home rose by 13.5% in the month compared to last year, the highest rate of growth since March 1979, government data show. The rise in the cost of living was 8.3% year-over-year in August. Food, in total, was 11.4% more expensive than last year, the biggest annual increase since May 1979.
What’s more, the cost of dining out was up 8% year-over-year.
Eggs saw the highest price increase among goods in grocery stores. They were 39.8% more expensive in August than a year ago. Supply drops, and not just strong demand, added to the price increase. Avian influenza wiped out around 10% of egg production across the country earlier this year, an egg producer previously told MarketWatch.
The flu also impacted poultry production. The price for chicken rose 16.6% year-over-year in August. In addition to extreme heat and tight supplies, people have turned to chicken instead of typically higher-priced beef, according to Brian Earnest, lead economist for animal protein at CoBank, a national cooperative bank serving industries across rural America.
Dairy and processed food prices also spiked. Margarine was up 38.3% in August year-over-year and butter was 24.6% higher, mainly due to the cost of raw materials such as soybean oil and cream. Flour and prepared flour mixes were 23.3% more expensive than a year ago. Crackers were up 17.7% on the year and frozen bakery products, such as pies and tarts, were up 18.1%.
Despite price declines for beef and pork, processed meat such as hot dogs and lunch meats continued to see a price increase in August. Frankfurter prices were up 18.3% in August year-over-year, whereas lunch meat prices rose 18.2%. This is partly due to an industry-wide labor shortage for workers, Earnest said, which means the higher wages needed to attract workers are being passed along to consumers.................
https://www.marketwatch.com/story/we-have-yet-to-see-a-peak-in-food-inflation-food-prices-see-highest-increase-since-1979-with-one-item-up-nearly-40-on-last-year-11663097731?mod=home-page
