A worldwide increase in inflation started to occur early last year due to various factors, including the COVID-19 pandemic, supply shortages, price gouging, and the Russian invasion of Ukraine. While inflation in the United States appears to be slowing, food prices remain way higher than they were a year ago.
In fact, according to data released by the Bureau of Labor Statistics earlier this month, food costs increased 11.4% over the past year, the largest annual increase since May 1979. Restaurant menu prices, in particular, spiked 8%, while grocery prices grew a whopping 13.5%. Read on to find out what grocery items in the U.S. have been greatly affected by inflation.
Grocery items most affected by inflation
According to data from the Bureau of Labor Statistics, the following grocery items had the highest price increases over the past 12 months:
- Eggs: 39.8%
- Margarine: 38.3%
- Butter: 24.6%
- Flour and prepared flour mixes: 23.3%
- Fats and oils: 21.5%
For a complete look at the price increases by percentage for different food items from August 2021 to August 2022, check out the lists below:
Cereals and Grains
- Flour and prepared flour mixes: 23.3%
- Breakfast cereal: 16.4%
- Rice: 13%
- Bread: 16.2%
- Fresh biscuits, rolls, and muffins: 17.1%
- Cakes, cupcakes, and cookies: 14.4%
Meat, Eggs, and Seafood
- Beef and veal: 2.5%
- Pork: 6.8%
- Chicken: 16.6%
- Fish and seafood: 8.7%
- Eggs: 39.8%
Dairy
- Milk: 17%
- Cheese: 13.5%
- Ice cream: 14%
Fruits and Vegetables
- Apples: 3.8%
- Bananas: 8.3%
- Oranges and tangerines: 14.4%
- Potatoes: 15.2%
- Lettuce: 10.7%
- Canned fruit: 16.6%
- Canned vegetables: 16.1%
- Frozen fruits and vegetables: 11.4%
Beverages
- Carbonated drinks: 12.9%
- Nonfrozen, noncarbonated juices and drinks: 13.4%
- Coffee: 17.6%
Sweets
- Sugar and sugar substitutes: 15.9%
- Candy and chewing gum: 10.9%
Baking, Snacks, and Baby Food
- Butter: 24.6%
- Margarine: 38.3%
- Fats and oils: 21.5%
- Peanut butter: 15.2%
- Snacks: 16.7%
- Spices, seasonings, condiments, and sauces: 15.4%
- Baby food: 12.6%
Why do food prices remain high despite slowing inflation?
Though the Federal Reserve has somehow slowed inflation in the U.S. by raising interest rates, food prices have yet to see a significant drop because food prices are largely out of the Central Bank’s control.
According to CNN Business, food prices are affected by several factors including global events such as the ongoing Russian invasion of Ukraine; and the impact of natural disasters like droughts, super typhoons, and diseases such as Avian flu, which has restricted the supply of eggs and turkeys.
Moreover, cuts in food prices don’t happen instantly, as decreases in ingredient prices take some time to funnel down to consumers. Lastly, the constant demand for food also makes it harder for food prices to drop.
