CPI: Did Inflation Increase the Prices of Bacon, Eggs and Bread in June?

Inflation data was worse than expected in June, with the Consumer Price Index (CPI) released by the Bureau of Labor Statistics (BLS) rising 9.1% for the 12 months ending in June, a new four-decade high. The increase was widespread, and food was one of the biggest contributors. However, some breakfast staples – such as bacon – saw a drop in their prices during the month.

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The Consumer Price Index for All Urban Consumers (CPI-U) rose 1.3% in June on a seasonally adjusted basis after rising 1% in May, the BLS said.

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This was higher than economists had expected, as they had expected the consumer price index – which measures what consumers pay for goods and services including clothing, groceries, restaurant meals, leisure activities and vehicles – to rise 8.8% in June, according to economists polled by The Wall. Street Journal.

The food index rose 1% in June, bringing the increase to 10.4% for the 12 months ending in June, the largest 12-month increase since the period ending February 1981, according to BLS data. This is also higher than the overall inflation rate.

The bacon index is down 1.1% in the month, but it’s still up 10.8% for the year. The price of eggs rose slightly, by 0.33% in June, but it is up a staggering 33.1% for the year. As for bread, the index rose 1.6% in June, representing a 10.8% increase in a 12-month period.

The food-at-home index also rose 1%. . said[بلس]That five of the six leading grocery food groups index rose in June.

Food items that have increased in price include cereals and bakery products. It rose 2.1% in June, with the flour index up 5.3%, the dairy and dairy products index rising 1.7%, while the fruits and vegetables index increased 0.7%.

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The BLS noted that the only major grocery group index to drop in June was the meat, poultry, fish and eggs index, which fell 0.4% during the month as beef and pork indices declined.

Jeffrey Rosenkranz, portfolio manager, Shelton Capital Management, told GOBankingRates that meat, poultry, fish and eggs aren’t the problem right now, and neither are fruits and vegetables.

“Food away from home – in restaurants and schools,” he said, “was a driver, probably because of the labor component.” Grain and grain were also contributors, likely as a result of the ongoing turmoil from the Russian invasion of Ukraine. These should moderate over the coming months as wheat and corn prices have fluctuated recently. On top of that, ice cream prices have gone up too, just in time for summer.”

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Indeed, ice cream prices are up 3.1% for the month and 12.5% ​​for the year.

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About the author

Yael Biswati Kennedy is a full-time financial journalist with numerous publications, including Dow Jones, Financial Times Group, Bloomberg and Business Insider. She has also worked as Vice President/Senior Content Writer at major New York City-based financial firms, including New York Life and MSCI. Yael She now works independently and most recently co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare” with Dr. Sean Manion. (CRC Press, April 2020) She holds two MAs, one in Journalism from New York University and one in Russian Studies from Toulouse Jean Jaures University, France.

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