USA: Food Values ​​Highest Annually Since 1979; see what else went up

Inflation in the United States may be slowing, but food prices are still rising.

Food costs rose 11.4% from a year ago, the biggest annual increase since May 1979, according to data released Tuesday by the US government.

Americans walking the supermarket aisle realize that most food is much more expensive than it was a year ago. Egg prices rose 39.8%, while flour was 23.3% more expensive. Milk rose 17% and the price of bread jumped 16.2%.

Meat and poultry also became more expensive. Chicken prices rose 16.6%, while meats rose 6.7% and pork, 6.8%. Fruits and vegetables together were up 9.4%.

Overall, supermarket prices were up 13.5% and restaurant menu prices were up 8%.

Why there is no relief at the supermarket

The Federal Reserve has been raising interest rates in an effort to tame inflation, but the central bank says food prices are largely out of its control.

That’s because food prices are affected by global events, such as the war in Ukraine, which affect the costs of wheat and other commodities.

Prices also reflect the impact of natural disasters such as droughts that kill crops and diseases such as bird flu, which have restricted the supply of eggs and turkeys.

In addition, it takes time for changes, such as reductions in ingredient prices, to reach consumers. This means that relief from rising supermarket prices could delay declines in other areas.

And demand for food is not flexible – consumers can save on other items, like clothes or gasoline, but they have to eat. Even so, shoppers are increasingly making changes to their diets and shopping habits to cope with rising costs.

People are failing to buy certain items. Sales of frozen dinners and entrees were down about 11% in volume in August compared with a year ago, according to a report this week by IRI, a market research firm.

Biscuit and refrigerated juice volumes dropped by around 9% and around 8%, respectively, in this period. Low-income families, in particular, are skipping items like juice, snacks, and sweets.

Recently, Applebee’s and IHOP have reported an increase in higher-income customers, who may be negotiating with more expensive restaurants. And Tyson (TSN) has noticed greater demand for chicken as shoppers buy less expensive steaks.

What got more expensive

Seasonally adjusted prices for most grocery items increased from July to August, but there were some highlights.

Margarine had the highest peak, up 7.3%. Eggs were 2.9% more expensive and sugar 2.4% more expensive, while flour and bread were up 2.2%. Canned fruit prices rose 3.4%, while fresh vegetables were 1.2% more expensive.

Hot dog prices were up 4.9%, while ham was up 1.3% and turkey was up 2.2%.

Some meat prices have dropped, however. Bacon was 0.5% cheaper, while the price of roasts, steaks and ribs dropped 1.9%.

And some fruit prices also moderated, with apples getting 2.3% cheaper and citrus fruits down 1.6%.