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Here’s what’s getting more expensive at the grocery store

Food prices continue to rise. The year ended March, unadjusted for seasonal fluctuations, food prices rose 8.8% – the biggest 12-month increase since the year ended May 1981, the Bureau of Labor Statistics said on Tuesday. Over the past year, almost every type of food has become more expensive. Grocery stores became 10% more expensive in total. Flour jumped 14.2%, milk 13.3%, eggs 11.2% and fruits and vegetables 8.5%. Bacon increased by 18.2%. Various factors have limited food supplies to various categories, as demand has remained strong, causing prices to rise sharply. One problem is the environmental. Droughts in Brazil, the United States and Canada have affected crops from coffee to soybeans and wheat, said William Osnato, a senior research analyst at Gro Intelligence, an agricultural data analysis firm. In addition, supply problems also affect the global vegetable oil market. A deadly bird flu reduces egg supply and greatly raises wholesale egg prices and also threatens consumer prices. It will take some time for prices to fall, Osnato said. “We are not going to leave a good crop in the US,” he said. We will be in an environment of high food prices for more than a year. “Butter Spikes Not every food became more expensive last month. However, many did. The price of canned vegetables jumped 4.2%, while dried beans, peas and lentils rose 4.4%, rice rose 3.2%, crackers and bread rose 2.7% Fresh raw materials also more expensive Uncooked minced meat jumped 2.1% Milk rose 1.3% Fresh vegetables rose 2.6% But the biggest jump Butter, rising 6 “The global milk supply has shrunk significantly over the last six months or so,” said Rob Fox, director of knowledge sharing at CoBank, which provides financial services to rural businesses in the United States. milk production for 2022 is 6 226.0 billion, 1, 1.2 billion lower than last month forecast and a projected reduction of 3 0.3 billion from 2021, ”according to the USDA Dairy Outlook released last year. month. “This would be the first annual decline in milk production since 2009.” But why did butter increase by 6% in March, while milk increased by only 1.3%? Fox explained that when milk supplies are squeezed and demand for milk is rising or steady, butter is the first thing to be hit. This is because it is a relatively small part of the dairy market. “It can have significant price volatility,” Fox said, noting that increases in butter prices mean other dairy products could become more expensive. Some products became cheaper last month. Donut prices fell 1.7%, peanut butter became 1.5% cheaper and ham prices fell 1.2%.

Food prices continue to rise.

The year ended March, unadjusted for seasonal fluctuations, food prices rose 8.8% – the biggest 12-month increase since the year ended May 1981, the Bureau of Labor Statistics said on Tuesday.

In the last year, almost every type of food has become more expensive.

Grocery stores became 10% more expensive in total. Flour jumped 14.2%, milk 13.3%, eggs 11.2% and fruits and vegetables 8.5%. Bacon rose 18.2%.

Various factors have reduced food supplies to various categories, as demand remained strong, causing prices to skyrocket.

One problem is the environment. Droughts in Brazil, the United States and Canada have affected crops from coffee to soybeans and wheat. William Osnato, Senior Research Analyst at Gro Intelligence, an agricultural data analysis company.

The war in Ukraine has upset the wheat market, sending prices soaring. In addition, supply problems also affect the global vegetable oil market. A deadly bird flu reduces egg supply and increases wholesale prices and also threatens consumer prices.

It will take some time for prices to fall again, Osnato noted.

“We are not going to get away with this with a good harvest in the US,” he said. “This is not going to solve anything. We will be in an environment of high food prices for more than a year.”

Butter spikes

Not every food became more expensive last month. But many did.

Many fixed-shelf products made big jumps from February to March, according to seasonally adjusted BLS data. The price of canned vegetables jumped 4.2%, while dried beans, peas and lentils rose 4.4%. Rice became 3.2% more expensive and crackers and bread increased 2.7%.

Fresh binders have also become more expensive. Uncooked minced meat jumped 2.1%. Milk increased by 1.3%. Fresh vegetables increased by 2.6%.

But the biggest jump? Butter, with an increase of 6%.

“The global milk supply has shrunk significantly over the last six months or so,” said Rob Fox, director of knowledge sharing at CoBank, which provides financial services to agricultural businesses.

In the United States, “the forecast for milk production for 2022 is 22 226.0 billion, 1.2 billion lower than last month’s forecast and a projected decrease of 3 0.3 billion from 2021,” according to the USDA . dairy perspective released last month. “This would be the first annual reduction in milk production since 2009.”

But why did butter increase by 6% in March, while milk increased by only 1.3%?

Fox explained that when milk stocks are squeezed and demand for milk is high or steady, butter is the first thing to hit. This is because it is a relatively small part of the dairy market. “It can have significant price volatility,” Fox said, noting that increases in butter prices mean other dairy products could become more expensive.

Some items got cheaper last month. Donut prices fell 1.7%, peanut butter became 1.5% cheaper and ham prices fell 1.2%.

Here’s what’s getting more expensive at the grocery store Source link Here’s what’s getting more expensive at the grocery store

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