Rising Grocery Costs: Tracking the Increase in Food Prices

By J. Alex- Jan 9, 2024

Yes, food prices have been on the rise since 2020 due to factors like inflation, supply-chain disruptions, and tariffs on imports. However, the rate of increase has slowed down in the past year.

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According to the latest Consumer Price Index (CPI) report by the Bureau of Labor Statistics:

• Between November 2022 and November 2023, food prices increased by 2.9%, a decline from the 10.6% rise in the previous year.
• Grocery costs rose by 1.7% compared to the previous year, while restaurant prices increased by 5.3%.
• Various factors like labor costs, supply chain issues, and environmental factors (like droughts and wildfires) have contributed to these price hikes.
• The conflict in Ukraine, affecting its food exports, has also played a role in the global market.

Some specific changes noted recently:

• Ham prices dipped by 4.7%, while egg prices rose by 2.2%.
• Egg prices saw a substantial annual decrease of 22.3%, while items like lettuce, apples, and tomatoes also decreased.
• Conversely, frozen noncarbonated juices and drinks, vending machine food, and certain beef products saw significant annual increases.

Tracking food prices involves federal agencies like the Bureau of Labor Statistics, which monitors the CPI (Consumer Price Index). Food's impact on the CPI is considerable (13.4%), second only to shelter. The Bureau of Economic Analysis looks at the Personal Consumption Expenditures (PCE) index, while the U.S. Department of Agriculture measures different food plans based on CPI data and family income levels.

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