Rising food costs affect grocery stores, restaurants
DAYTON – If you’re planning a pre-game party this fall, expect to see an increase in your grocery bill. The prices of foods like meat, eggs and other staples have been rising steadily for months.
Food prices are rising due to labor costs, inflation and supply chain issues, local economists told the Dayton Daily News. And these increases force restaurant owners to increase the price of their meals.
“Indeed, food prices are rising and at a faster rate over the past summer,” said Mingming Pan, professor of economics at Wright State University.
Food prices rose 0.8% in June, 0.7% in July and 0.4% in August, according to consumer price index data released by the Bureau of Labor Statistics, which measures changes in the prices paid by consumers.
However, headline inflation has risen and the cost has increased. In June, the overall inflation rate was 0.9%, while the food inflation rate was 0.8%.
Rising food prices are also pushing up restaurant meal prices, according to the same statistics. The CPI of shopping in restaurants rose 0.4% in August and was 4.7% higher than in August 2020.
Restaurants are paying higher labor costs, as well as an increase in the price of food, which also leads to an increase in the amount of restaurant fees per plate, said John Barker, President and CEO of the Ohio Restaurant Association.
Barker said August was the first month in five months that restaurants had not seen an increase in sales.
“Now with COVID and the delta variant, there is now a little bit of pressure on top-tier sales, again,” he said.
Pan said the price hike is in part due to the Federal Reserve’s large injection of money into the economy. Federal government stimulus packages and the exceptional stock market boom also played a role in rising prices, as well as supply chain bottlenecks and higher labor costs. , she said.
Pan said the costs of food even affected the way she shopped.
“For foods that don’t show a lot of price increase, I continue to buy as usual,” Pan said. “But if a certain food item on my weekly shopping list has a much higher price, I usually find alternatives to buy. “
However, the different types of food fluctuated differently in terms of costs, she noted. Meat generally grew faster than fruits and vegetables. Prices for milk and dairy products increased the least, with some dairy products experiencing price declines.
It is not clear when food price inflation may slow down. Michael F. Gorman, a professor at the University of Dayton School of Business, said there are several bottlenecks and supply chain issues affecting the price of food.
“Many shortages are short-term, however, inflation tends to create inflation – meaning that if people expect prices to rise, they tend to rise, like a self-prophesy. director, ”Gorman said.
The Federal Reserve could play a role in future food prices.
“When the Federal Reserve tightens monetary policy, the economy will start to calm down a bit, and then we’ll start to see slower wage increases and more stabilized food prices,” Pan said.