Just like last year, shoppers can expect food costs to continue through 2022. While food prices were relatively unchanged before the pandemic (between 2015 and 2019), supply chain issues, labor shortages and overall high demand in the US have been identified contributing to an impending consumer price hike.
Manufacturers and grocery stores in particular have felt the pressure to keep important items in stock. Not only has this resulted in higher production costs, but in turn it has led companies to take measures like increasing retail prices for consumers, and things are unlikely to get better anytime soon. To better prepare for these changes, here are some staple foods that will see price hike in the New Year.
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Steaks are already known to come at a high price (Costco’s Rastelli Market 18-pack steaks cost nearly $ 750), but some varieties are getting even more expensive. CNBC reported that beef and veal prices rose dramatically by 20.1% over the past year. The news site suggested that the pandemic caused a sharp slowdown in beef production, and this extends to all types of meat, including seafood and pork.
Meat companies are taking matters into their own hands to prevent steak prices from staying high through 2022, but the efforts are not making as much ground as hoped. When asked about the situation, the North American Meat Institute pointed out Eat This, Not That! on a December 10 press release on who is responsible for the price hikes.
“The White House Economic Council again demonstrates its ignorance of agricultural economics and the fundamentals of supply and demand. That argument is simply a flush and repetition of their attempts in September to blame meat and poultry companies for inflation, which is not confined to food, but is being felt across the economy, ”said Julie Anna Potts, President and CEO of Meat Institute in the release.
“The answer is: consumer demand for meat and poultry products has never been so high. Members of the Meat Institute are producing more meat than ever in exceptional circumstances to keep our agricultural economy going and to get food on American tables, ”she added. Time will tell if that works.
Like steak, chicken has seen its price rise 9% from 2020. National Chicken Council President Mike Brown addressed the reason for the increased price of chicken. In a December 2021 press release, Brown stated that “a 9 percent year-over-year increase in chicken prices barely outperforms inflation … on top of a labor shortage. It’s Economy 101. “
Brown added that the lack of truck drivers and delivery delays also contributed to the inflated price. With these things still plaguing the food industry, it’s safe to say that 2022 could bring more price changes to chicken.
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Companies like Kraft are among the top manufacturers of the world’s popular association, but it was made by the Wall Street Journal that parent company Kraft Heinz Company will tell customers that it will increase the prices of many of their products … with some items increasing by as much as 20%. Buyers should be prepared for this as the price of mayo is set to change very soon.
If you add to the list of more expensive protein items, consumers will soon notice the difference in the price of a box of eggs again. In 2021, CNN found a cost increase of 11.6% compared to the same point in time as in the previous year.
”… We have decided to increase our prices for the time being. We understand this is a difficult time for everyone and higher grocery bills can only add to it… ”wrote organic egg company Pete and Gerry’s when addressing the reasons for the price increase. “In the egg world, the cost of high-quality organic ingredients for our hens’ feed supplement has reached an all-time high.”
The company noted that it had been made to “make some tough decisions,” in part due to the stress on operations from the pandemic. Since these are still ongoing, the price of eggs could go up and down over the next few months.
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Grain is said to have been 5% more expensive in autumn 2021 than in 2020, an end to this increase may not be in sight. CNN reported that the popular General Mills brand had announced in a letter to a wholesale supplier that the company would be raising prices on a number of items including cereals such as Cheerios, Cinnamon Toast Crunch, Lucky Charm’s, Wheaties, Reese’s Puffs, Trix and more. ”
CNN added that General Mills’ inflated prices were a reaction to “… higher material and labor costs”. The price increase is expected to begin in mid-January.
“Potatoes, celery and other heavier vegetables will have higher prices next year, partly because of the higher freight costs …”, says a report from Wall Street Journal.
The USDA Economic Research Service concluded that, looking at the consumer price index, which tracks inflation, “Eating at home … rose 0.3 percent from October 2021 to November 2021 and was 6.4 percent higher than November 2020.” . “
Mashable stated that the reason for the price hike is simply due to many of the COVID-related issues that other companies are facing, which they say are “still wreaking havoc on the food industry” and will continue to do so for a while.
For more information on what’s going on in the supermarket near you, see next: