Much like last year, shoppers can expect food prices to continue rising through 2022. relatively unchanged before the pandemic (between 2015 and 2019), supply chain issues, labor shortages and strong aggregate demand across the United States are believed to have contributed to looming consumer price hikes.
Manufacturers and grocery stores have particularly felt the pressures keep essential items in stock. This not only resulted in higher production costs, but, in turn, led companies to implement measures such as increasing Retail price for consumers, and that is unlikely to improve anytime soon. To better prepare for these changes, here are some staples that will see their prices increase in the new year.
Related: This Grocery Store Is America’s Most Trusted, New Survey Finds
Steaks are already known to have a hefty price tag (Costco’s Rastelli Market 18 steaks will set you back close to $ 750), but some varieties are about to get even more expensive. CNBC reported that beef and veal prices have increased dramatically over the past year, up 20.1%. The news site suggested the pandemic has caused a major slowdown in beef production, and this is spreading to all types of meat, including seafood and pork.
Meat organizations are taking matters into their own hands to try to keep steak prices from staying high until 2022, but the efforts are not gaining as much traction as hoped. When asked about the situation, the North American Meat Institute pointed out Eat this, not that! to a December 10 press release on who is to blame for the price increases.
“The White House Economic Council once again demonstrates its ignorance of agricultural economics and the fundamentals of supply and demand. This argument is just a flush and repeat of their September attempts to blame the meat and poultry companies for inflation that is not limited to food, but is felt throughout the economy, ”Julie Anna Potts, President and CEO of the Meat Institute said in the press release.
“The answer is that consumer demand for meat and poultry products has never been higher. Members of the Meat Institute are producing more meat than ever before under extraordinary circumstances to keep our agricultural economy moving. and put food on Americans’ tables, ”she adds. Time will tell if it works.
Like steak, chicken has also seen a price spike, up 9% from 2020. National Chicken Council President Mike Brown explained the reason for the increase in the price of chicken. In December press release 2021, Brown said that “a 9% year-over-year increase in chicken prices barely exceeds inflation … on top of a labor shortage. It’s economy 101. ”
Brown added that truck driver shortages and shipping delays have also contributed to price inflation. Since these things still plague the food industry, it’s safe to say that 2022 could see more price changes for chicken.
Related: To get all the latest grocery store news delivered straight to your email inbox every day, sign up for our newsletter!
Companies like Kraft are among the best manufacturers of the beloved dressing room in the world, yet it was reported by the the Wall Street newspaper that the parent organization Kraft Heinz Company is about to tell “customers that it would increase the prices of several of its products … with certain items by up to 20%”. Buyers need to be prepared as the price of mayonnaise is expected to change very soon.
By adding more expensive protein products to the list, consumers may soon notice the difference in the price of a carton of eggs again. In 2021, CNN Noted a cost increase of 11.6% compared to the same period as the previous year.
“… We have chosen to increase our prices for now. We recognize that it is a difficult time for everyone and that higher grocery bills can only help…” the company wrote. organic eggs Pete and Gerry to explain why he increased his prices. “In the egg world, the cost of high quality organic ingredients for complementary feeding of our hens has reached an all time high.
The company noted that it had had to “make tough decisions,” in part because of the pressure the pandemic has placed on operations. As these continue, the price of eggs could rise and fall further over the next few months.
Related: America’s Largest Grocery Chain Changes This COVID-19 Rule
Cereals would be 5% more expensive in fall 2021 than they were in 2020, with this increase perhaps not having an end in sight. CNN reported that in a letter to a wholesale supplier, the popular brand General Mills revealed that the company would increase the prices of a number of items, including grains like “Cheerios, Cinnamon Toast Crunch, Lucky Charm’s, Wheaties, Reese’s Puffs, Trix and more “.
CNN added that General Mills’ inflated prices are due to “… higher material and labor costs.” The price increase is expected to start around mid-January.
“Potatoes, celery and other heavier vegetables will have higher prices next year in part because of higher transportation costs…” says a report by the Wall Street newspaper.
the USDA Economic Research Service concluded that by examining the consumer price index which tracks inflation: “Food in the home… increased 0.3% from October 2021 to November 2021 and was 6.4% higher until November 2020. “
Mashable explained that the reason for the price hike is simply a result of many COVID-related issues other companies are facing, which they say “are still wreaking havoc in the food industry” and will for some time to come. .
For more information on what’s going on in the supermarket near you, read on: