The Coronavirus has led to the fastest rise in food prices in more than four decades.
Today’s blog is by Gayl Southard, Administrative Lead at SafeSourcing.
The Coronavirus has led to the fastest rise in food prices in more than four decades. Supermarkets are restoring promotions and value food packs are being designed by food makers. Because of the increased costs for labor and transportation, it is likely higher prices will remain the norm for a while. Companies are buying equipment to keep customers safe and configuring the store layout to keep customers socially distanced. All of these measures result in more trickle down costs to the consumer. Prices rose 2.6% in April from a month earlier, according to the Labor Department, the biggest monthly increase since 1974.
“Mondelez International Inc. said it is considering smaller packages of some products like it’s Oreos and other snacks that cost less overall. Campbell Soup Co. said it might add more family-size packs that will cost less per ounce.”1
It is expected that food, as a percentage of disposable income, will rise this year for the first time in decades. Many people are still out of work, or their hours have been cut, lowering their monthly income. The jump of meat and poultry has propelled the increase in food cost. The pandemic has disrupted food plants because of shutdowns. Meat prices rose 15% the end of May from a year prior. Some consumers have switched to generic brands and discount stores in order to save money. Some people are opting to cut back on meat, or are going meatless.
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Joe Flint, WSJ, 6/10/2020