Inflation is heating up for Americans, and fresh produce purchases are no exception.
The Bureau of Labor Statistics reported that the Consumer Price Index for All Urban Consumers increased 0.9% in October, and over the past 12 months is running 6.2% above a year ago.
The Consumer Price Index for food purchased for at-home consumption has risen 5.4% over the past 12 months. That is much higher than in recent years.
In fact, during the decade prior to the start of the pandemic, the U.S. Chamber of Commerce said the average annual increase in grocery store prices was only 1.3%.
The labor shortage, supply chain disruptions, higher energy prices are contributing to food price inflation, according to the group. Higher demand for food since the pandemic is also driving price increases.
The single biggest factor contributing to higher food prices, economists say, is the fact that growers and food manufacturers can’t find enough workers to meet demand. Labor also is short at ports, for trucking needs and at supermarkets.
On top of that, the U.S. Chamber of Commerce reports that oil prices are currently at their highest level since 2014, while natural gas prices have nearly doubled. That directly impacts agriculture, according to the group, as industry estimates indicate that energy accounts for between 20% and 30% of absolute agriculture costs.
Price pressure
The BLS said all six major grocery store food group indexes increased over the period from October 2020 to October 2021.
The Consumer Price Index in October for fresh fruits and vegetables was 2.8% higher than October 2020, which was less of an increase than several food categories. For example, the index for meats, poultry, fish, and eggs increased 11.9% over the past 12 months, with the index for beef rising 20.1% and the index for pork rising 14.1%.
Among fresh produce items, highest rates of retail inflation compared with year-ago levels were noted for apples (up 6.7%) and citrus(up 3.7%). The overall inflation rate for fresh fruit was 3.9% compared with year-ago levels, according to the report.
The BLS report said the average inflation for retail fresh vegetables over the past 12 months was 1.7%, with potatoes up 1.7% but lettuce off 0.6% compared with October 2020.
More inflation may be ahead, according to government-reported wholesale and grower prices for fresh produce.
The average shipping point price for all fresh produce commodities tracked by the U.S. Department of Agriculture was $19.94 on Nov. 6, up 13% from an average shipping point price of $17.63 per carton the same week a year ago.
The average U.S. terminal market price for all fresh produce items tracked by the USDA was $31.66 per carton on Nov. 6, up 11% from $28.56 per carton the same time a year ago.
