August 11, 2022
MarketWatch informs that according to a new report from the Bureau of Labor Statistics, grocery prices increased by 1.3% in July 2022, which is the largest increase since 1979! This is bad news for American consumers, who are already struggling with increasing food costs. The price of eggs, beef, pork, and poultry all increased in July, marking a 13.1% increase compared to last year.
The cost of consumer goods and services remained steady in July, as well as the rise in the cost of living. Owing to reduced prices in electricity as well as the cost of gas, the inflation percentage in July was 8.5%, less than the June 9.1%, breaking a 41-year record. The average cost of groceries, on the other hand, increased by 1.1% in July, and 10.9% this year.
The most significant rise was in the cost of eggs, which went up by 4.3% in July and 38% in the year. Potatoes also showed a significant price increase of 4.6% on the month and 13.3% compared to last year. Butter prices were up over 26% on the year in July, and the cost of coffee went up over 20% during the same time period. Although the price of beef and veal decreased, continuing their three-month trend downward, they are still higher by 3.4% compared to July 2021.
Following a similar trend, the cost of dining out has also increased by 0.7% in July and 7.6% compared to the same period last year. This might make people consider ordering food through DoorDash or some of its reliable competitors. And since certain meal delivery services offer a significant discount, it’s possible that more and more people will return to grocery shopping from the comfort of their homes.
In July, the Consumer Price Index (CPI) excluding food and energy costs rose by 5.9% on the year, which, according to a chief financial analyst at Bankrate, is the main reason this inflation trend occurred. Another economic analyst, however, says the war in Ukraine, as well as other pandemic-related supply-chain disruptions, are the reason food prices are continuously growing.