Grocery prices have risen about 26% (GOBankingRates) in four years, a little above the overall average inflation rate, but since we all shop for groceries more frequently than about anything else, we notice these increases more often. During the end of the Obama administration and the beginning of the Trump administration grocery inflation was averaging about 2.7%. Then Covid hit and that inflation rate hit a high of about 11% and is now about 2.2%. If the inflation rate had stayed about 2.7%, grocery prices would have been about 11% higher now after four years.
That means grocery prices are about 15% higher now than they would be after 2.7% annual inflation. Why? Some politicians will say that greed and price gouging are to blame, but most of the price increases are due to climate change, supply chain issues, and wage increases of essential workers. With the more unpredictable changes in rain/drought and heat/cold spells, farmers and ranchers face a more challenging environment in getting their products to market. While supply chain issues have eased, the war in Ukraine still has an added inflation effect on grain prices.
But, the biggest increase in the cost of groceries is caused by much deserved wage increases for essential workers, helped by the tight job market. While we all have heard about strikes by teachers, auto makers, nurses, etc., other workers in the grocery supply chain — like truck drivers, farm workers, bakers, butchers, port workers, cooks, food processing workers, grocery store workers, etc. m— have also received pay increases, adding to the cost of groceries.
All of this means that the cost of groceries is not likely to go down much. So, if a politician says they will lower the price of groceries, ask ‘How?!’
David Hart, Torrey
