In the twelve months ending in June, overall food prices rose 10.4%, the largest annual increase since February 1981, according to data released Wednesday by the Bureau of Labor Statistics.
Grocery prices jumped 12.2% in the year to June, not adjusted for seasonal fluctuations. In that period, almost every item has become more expensive, with some denominations See dramatic increases. The price of eggs rose 33.1%, flour increased 19.2%, and chicken rose 18.6%. Milk prices rose 16.4%, while those of fruits and vegetables rose 8.1%.
Restaurants List Prices are up 7.7% in that time period.
Rob Fox, director of knowledge sharing at CoBank, which provides financial services to agribusiness, said that when it came to food, the “avalanche of problems” had driven up prices.
What has changed in the grocery store Mayo
From May to June, adjusted for seasonal fluctuations, a number of grocery items become more expensive.
Flour prices jumped 5.3%. The price of butter increased by 4.8% and margarine increased by 6.8%.
Fresh biscuits, rolls and muffins rose 3.5%, while fresh cookies and cupcakes rose 2.9%. Shoppers looking to satisfy their dessert cravings had to pay more in the frozen aisle, too—ice cream got 4% more expensive, and frozen and refrigerated bakery products fetched a 2.9% higher price. Sugar rose 2.1%.
But there was some relief at the checkout desk, especially in the meat department. Beef and veal prices fell 2.3%, pork prices fell 1.6%, and bacon prices fell 1.9%. However, hot dogs were spotty, with their prices up 4.5%.
In the fresh produce division, citrus fruits fell 4.5%.
what happened after that?
But there are indications that prices could start to fall.
“My expectation is that we are now at the peak of consumer inflation,” Fox said. This is partly because food producers’ input costs, which were trending upwards last year, peaked earlier this year and have been declining. He said.
In addition, consumers may begin to limit their purchases or choose lower-priced options when possible, which reduces demand and – ultimately – leads to lower prices.
Fox noted that if prices start to fall, it won’t happen immediately, saying it could take another six to nine months for prices to fall. Even so, price tags are not expected to fall below levels seen this time last year.
CNN Business’s Lucy Bailey and Alicia Wallace contributed to this report.