The Bureau of Labor Statistics (BLS) reported recent data on the nation’s high inflation related to food prices.
He highlighted that the increase in grocery prices is higher compared to general prices in the United States. The Consumer Price Index (CPI) was 3.1% in January 2024, however it is still less than the levels reached in 2022.
The CPI measures the evolution of the set of prices of goods and services consumed by the American population. In the month of January, food prices increased by 0.4% compared to December.
The rate was higher than the general price index, which increased 0.3% the same month. Currently, supermarket prices are 25% higher than in January 2020 and inflation has increased by 19%. This analysis indicates that the cost of the basic basket is much higher.
Foods with the greatest upward trend
The left-wing think tank Groundwork Collective points out that there are 5 types of food responsible for 30% of inflation in recent years. These foods include beef and veal, poultry, non-frozen and non-carbonated juices and drinks, fresh fruits and vegetables, and snacks.
Beef is among the highest prices in the month of January with an increase of 7.7%. This industry reports that labor costs and record cattle numbers are responsible for the high cost of beef.
Also, supply problems and climate change, especially drought, have had an impact on the increase in prices. Pastures for raising cows have been reduced and herds are smaller, explained the United States Department of Agriculture (USDA). In relation to other foods such as frozen non-carbonated drinks; orange juice increased 29% last month in annual terms.
The USDA in this regard indicated that orange production has been affected by severe weather phenomena and diseases. Non-frozen and non-carbonated beverages increased by 4.2%, according to CPI data.
The increase in prices in food affects low-income consumers much more because they must spend a much larger proportion of their income to pay for the basics.
