Cereal, baked goods and fresh fruit are more expensive now

Jenn Leach

Why are foods like cereal, baked goods, fresh fruit, fish, and eggs more expensive now?

It's due to inflation.

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According to this source, these are some of the foods that have risen in price:

  • Meat, poultry, fish and eggs are 13% more expensive
  • Fresh fruit has gone up in price by 10.6%
  • Vegetables increased by 4.3%
  • Pre-packaged cereals and baked goods are 7.7% more expensive

The inflation rate is driven by supply chain disruptions. Supply chain disruptions are happening because of the pandemic. It's the reason why goods like semiconductors and raw materials are in short supply.

Food prices are expected to rise by 4.5% to 5.5% in 2022, according to the U.S. Department of Agriculture's Food Price Outlook.

Other goods impacted by rising prices

It's not just limited to cereal, baked goods and fresh fruits. Other non-food goods have risen in price as well, like:

  • New vehicle prices rose 0.3%
  • Prescription drugs index and medical care index rose by 0.2% to 0.3%
  • The shelter index rose by 4.7% over the last 12 months

Pat Westhoff, research group director at Food and Agriculture Policy Research Institute at the University of Missouri talked about...

...the biggest single-year increase in 14 years.

Westhoff said:

"I won't give you a specific number, but it's safe to say that if we were creating a new baseline today, we'd almost certainly show a higher rate,
We have seen much larger increases year over year for meats, for fats and oils, and for fresh fruits than you did for most other products,
For example, at the farm level, yes, farmers are getting higher prices for the commodities that they sell, but they are also paying more for fertilizer, fuel, and for other inputs,
And so the net income picture for farmers may not be terribly different this year from what it was last year.

What do you think about this?

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Disclaimer: This article is only for educational and informational purposes.

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