While food prices are rising, they are still falling at a slower rate than in previous years.
According to data from the Bureau of Labor Statistics released Thursday, October was.6% more expensive than September when adjusted for seasonal swings.
The year ended October without seasonal adjustments saw food prices rise 10.9%, grocery prices increase 12.4%, and restaurant prices rise 8.6%.
These increases are not as drastic as the records set a few short months ago. However, food prices continue to outpace the overall rate for inflation which was 7.7% for the year.
The Federal Reserve has tried to control inflation by increasing interest rates. However, this doesn’t make much difference in restaurant and grocery prices.
A variety of factors can disrupt supply when it comes to food.
The extreme heat and drought, along with a deadly avian virus, are affecting some crops and depleting the supply of turkeys. The war in Ukraine and high energy prices are causing volatility in the grain markets, which in turn impacts fertilizer costs and transport costs. This is also driving up food prices.
“Those things remain problematic,” said Tom Bailey (senior analyst of consumer foods at Rabobank).
These are the reasons why grocery prices have risen.
What’s going to get more expensive, and which will be cheaper?
From October through the current year, eggs were 43% more costly. Butter prices rose 26.7% while flour prices increased 24.6%. Lettuce increased by 17.7%, potatoes rose by 15.2% and poultry rose by 14.9%. The price of bread, rice, coffee, and coffee all rose 14.8%.
Some items saw decreases this year, however, especially in meat. Uncooked beef steak prices fell 6.9% and beef and vegetable prices dropped 3.6%.
Bailey stated that they have seen some retailers lower the prices for beef products. Bailey said this was a sign that retailers are trying to attract customers into their stores.
Even though prices have fallen, consumers still feel the pain.
Bailey said that the share of food spending by consumers is still much higher than it has been over the last 20 years.
Prices rose slightly in October compared with the previous month.
Eggs experienced the largest increase, with a 10.1% rise in September. Lunch meats went up 3.4%, while lettuce and tomatoes were 2.3% more expensive. Flour rose 2%.
But several items got less expensive. Fresh fruit declined by 2.4%. Uncooked beef roasts, hot dogs, and breakfast sausage declined by 2.3%. Fresh doughnuts, sweet rolls, and coffee cakes also fell by 1.9%.