Food inflation has been bad, but is the worst of it over?
That’s the question I asked the LinkedIn Fresh Produce Industry Discussion Group.
The results so far: 88% of a limited number of industry leaders who took the poll so far believe the worst of food inflation is still to come.
That’s not a bad hunch.
According to the Bureau of Labor Statistics, the food index of consumer prices increased 1.1% in July, representing the seventh consecutive monthly increase of 0.9% or more.
The food at home index rose 1.3% in July, as all six major grocery store food group indexes increased, according to the BLS.
Shockingly, the food at home (grocery) index rose 13.1% over the last 12 months, the largest 12-month increase since the period ending March 1979.
Retail prices for fruits and vegetables rose more than 9% over the past year, according to the BLS numbers.
The rise in grocery prices almost made it seem that restaurant prices were a bargain.
The BLS said the index for food away from home rose 7.6% over the last year. The index for full-service meals rose 8.9% over the last 12 months, and the index for limited-service meals rose 7.2% over the last year.
Where do we stand today in regard to food inflation?
Here are some charts showing the direction of fruit and vegetable prices since early 2020.
One bright note is that transportation rates have been falling in recent weeks. See the chart below.
