Grocery prices have continued to rise over the past month, putting more pressure on shoppers’ wallets.
The at-home food index, which measures grocery store prices, rose 0.7% month-on-month in September, up 13% year-on-year, according to new government data released Thursday.
Almost everything went up in September.
Fruits and vegetables were up 1.6% for him over the month, while grains and baked goods were up 0.9% for him. Other groceries rose 0.5% in September after rising 1.1% in August. Meat, poultry, fish and eggs were up 0.4% month-on-month, and beverages were up 0.6%.
Prices for many of these items are increasing by double digits each year.
Many factors contribute to the price increase. Manufacturers say they pay more for labor and packaging. Extreme weather such as droughts and floods, and diseases such as the deadly avian flu, are damaging crops, killing laying hens and crushing supplies. “It’s clear that the environment remains highly inflationary with many supply chain challenges across the industry,” Pepsi (PEP) CEO Ramon Laguarta said on a conference call Wednesday.
The company’s prices are increasing by 17% each year.
Now in high demand. Consumers may have some discretion, but they have to eat. Many people are still working from home and eating more meals at home than they did pre-pandemic. This imbalance between supply and demand means that businesses can pass on higher prices to buyers without losing sales.
Rising grocery store prices are forcing customers to compromise. Many shoppers are buying fewer products, switching to cheaper Private His brands, and returning to convenience.
Last year, more than 1 million households shopped at food discount Aldi for the first time, according to the company.
Walmart (WMT) recently said high food inflation is affecting customers’ ability to buy durable goods such as clothing and furniture.