Why are groceries going up

Economists surveyed by The Wall Street Journal suggest that inflation is here to stay for at least the next couple of years, predicting an average annual increase of 2. These are levels comparable to those last seen in For the most part, we have the economic responses to the pandemic to thank for this recent burst of inflation. The first culprit of inflation came from panic-induced consumer shopping. According to Vox. In addition, high demand for certain grocery items, such as fresh fruit, created situations where demand overwhelmed supply.

Additionally, early on in the pandemic, protocols meant to keep workers safe slowed or even shut down parts of the supply chain, causing delays and trouble fulfilling demand, and lost income, that many companies are now trying to recoup through increased prices.

And some goods have become difficult to obtain as a result of shipping delays, drought that affects food production and the national labor shortage, according to Business Insider.

Not every food item increased in price—for example, even though bread making became all the rage during shutdowns, flour and yeast prices fell. As did the price of hard seltzers, despite their popularity. What went up? Of course, non-grocery items have also gone up, particularly lumber, as consumers newly working at home suddenly found themselves needing to outfit their homes with office furniture and furniture companies could not keep up with demand, according to Vox.

It has come down, but not back to prices. The repercussions of inflation go far beyond your grocery cart, however.

According to the Wall Street Journal, several years of higher inflation has a ripple effect throughout the economy. Not only will your personal budget feel tighter, it effects such things as the housing industry and makes it harder for businesses to succeed. For shopping news, tips and deals, join us on our Shopping Ninjas Facebook group. Facebook Twitter Email. Food prices and inflation keep going up but here are 3 tips to save on your groceries.

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Do your normal grocery purchases seem to be more expensive lately? Even though the economy has been rebounding from the impacts of the pandemic, this level of inflation may persist for some time. Economists surveyed by The Wall Street Journal suggest that inflation is here to stay for at least the next couple of years, predicting an average annual increase of 2.

These are levels comparable to those last seen in For the most part, we have the economic responses to the pandemic to thank for this recent burst of inflation. The first culprit of inflation came from panic-induced consumer shopping. According to Vox. In addition, high demand for certain grocery items, such as fresh fruit, created situations where demand overwhelmed supply. Additionally, early on in the pandemic, protocols meant to keep workers safe slowed or even shut down parts of the supply chain, causing delays and trouble fulfilling demand, and lost income, that many companies are now trying to recoup through increased prices.

And some goods have become difficult to obtain as a result of shipping delays, drought that affects food production and the national labor shortage, according to Business Insider. Not every food item increased in price—for example, even though bread making became all the rage during shutdowns, flour and yeast prices fell. Rising gas prices make trucking a more expensive endeavor, and the logistics are further complicated by more retiring truckers, Lempert noted.

Meanwhile, Chinese demands for corn and soybeans drive up those prices, he said. On top of that are new customer expectations about shopping during a pandemic, and all those plexiglass dividers, hand-sanitizer stations and cleaning supplies to wipe down scanning equipment and carts cost money. Food manufacturers are all in the same boat. Yes, there are supply-chain challenges and added costs to surmount those challenges, said Greg Portell, lead partner in the global consumer practice at Kearney, a strategy and management consulting firm.

But as restaurants feed more people eager to get out of the house as vaccination rates rise, grocery stores face a new set of challenges in keeping customers. Prices should go down after suppliers, along the food industry, invest in better, more certain ways to get food on the shelves, he said. We expect these three factors will likely be transitory, and that their impact should fade over time as the economy recovers from the pandemic.