What Factors Are Pushing Up Food Prices?
Supply chain issues are just one factor pushing up food costs.
The most recent Consumer Price Index shows prices increased nearly 8% in January, and that does not account for any lasting impact of the war in Ukraine. A University of Missouri Extension professor breaks down some of the categories.
“I will say higher prices for things like cattle, hogs, milk products, we can look at things like fats and oils as well, so, there are some farm level increases in prices, but we have to remind ourselves that things like energy costs, labor costs, have all been going up. That adds costs from the farm gate to the retail that, in some cases, are more important than what’s been happening at the farm level in terms of where we sit with the CPI for food.”
Scott Brown says there is no doubt the war in Ukraine is pressuring food prices. We will get a better picture of just how much when the Index is updated on April 12th.