Over the past year, virtually every type of food has become more expensive.
Overall, groceries have become 10% more expensive. Flour jumped 14.2%, milk 13.3%, eggs 11.2% and fruit and vegetables 8.5%. Bacon increased by 18.2%.
A number of factors tightened food supplies in several categories as demand remained strong, leading to price spikes across the board.
It will take some time before prices come back down, Osnato noted.
“We’re not about to get away with a good American crop,” he said. “It won’t solve anything. We’re going to be in a high food price environment for over a year.”
Not all groceries were more expensive last month. But many have.
Many shelf-stable products saw big jumps from February to March, according to seasonally adjusted data from the BLS. The price of canned vegetables jumped 4.2%, while the dried beans, peas and lentils category rose 4.4%. Rice became 3.2% more expensive, and crackers and bread increased by 2.7%.
Fresh staples have also become more expensive. Uncooked ground beef jumped 2.1%. Milk increased by 1.3%. Fresh vegetables increased by 2.6%.
But the biggest leap? Butter, with a 6% increase.
“Global milk supply over the past six months or so has contracted significantly,” said Rob Fox, director of the knowledge exchange division at CoBank, which provides financial services to agribusiness. industry.
But why did butter rise 6% in March, while milk only rose 1.3%?
Fox explained that when the milk supply is tight and demand for milk is up or flat, butter is the first thing to be hit. This is because it is a relatively small part of the dairy market. “That can have significant price volatility,” Fox said, noting that spikes in butter prices mean other dairy products could become more expensive as well.
A few items have become cheaper in the last month. Donut prices fell 1.7%, peanut butter became 1.5% cheaper, and ham prices fell 1.2%.