The latest Consumer Price Index shows that food prices are still increasing at a fast pace. Prices went up another point for a total of 3 percent so far this year.
That is higher than the average increase for an entire year.
A USDA economist says that consumers were already paying 9 percent more for food than a year ago, and the increase is mostly driven by higher energy costs.
“Has increased somewhere in the order of 30 percent year over year and is 20 percent higher than a month ago. This is going to affect the entire food industry,” according to Matt MacLachlan.
Labor costs are higher and the price for basic raw commodities, like wheat, is up which could be attributed to the Ukrainian war.
Related:
Consumer Price Index continues to break its own record
USDA significantly raises food inflation outlook for 2022
What Factors Are Pushing Up Food Prices?
Ukraine War is Forcing Poorer Countries to Subsidize Food Prices