Inflation has re-emerged across the U.S. over the last several months. In December of 2021, the Consumer Price Index (CPI) rose by 7% compared to the prior year, the largest annual increase since 1982. While inflation has hit used vehicles, energy and utilities the hardest, food has not been immune to these price increases. These high food prices will affect consumers as we approach Super Bowl Sunday, which is the second-largest food consumption day of the year, following Thanksgiving.
Annual Food Price Percent Change
Food prices increased by 3.9% in 2021, the highest level since the 5% increase seen in 2008 (as shown in the figure above). Supply-chain disruptions have been one of the leading causes of these recent price increases.
Not all food has been affected the same over the past year, as shown below. Meat, poultry, and fish have seen the largest price increases, going up by 12.6% between December 2020 and December 2021. This has been especially challenging for consumers, as meat, poultry, and fish make up the largest share of consumers’ food expenditures. Eggs also saw a high price increase (11.1%) but make up a relatively low proportion of what the consumers spend on food. Fruits and vegetable prices increased by 5.2%. Dairy products were the most sheltered from price increases, rising by just 1.6% over the past year.
Food Price Changes Over the Past Year, by Category
While meat prices have seen the largest increases over the past year, the changes have differed categorically. Beef and veal led the way, increasing by 18.6% last year. A series of meatpacking plant closures contributed to this sizeable increase. Poultry was less affected by inflation but still saw a sizeable increase of almost 10%. Fish and seafood prices increased by 8.4%.
Meat, Poultry, and Fish Price Changes Over the Past Year, by Category
Source : aces.edu