The good news is that inflation in the U.S. slowed down a bit in July after Fed’s interest rate hikes. The bad news is that Americans have been paying significantly more for food and groceries and can expect to continue doing so in the near future.
A report released by the Bureau of Labor Statistics earlier this week revealed that the cost of food jumped 10.9% year-over-year in July. The grocery prices, which are categorized as “food at home,” saw an even bigger hike of 13.1%. This represents the highest increase since 1979.
Looking at a 12-month basis, cereals and bakery products increased 15.0% over the year, while prices of flour saw a 22.7 hike. But the biggest hike was the courtesy of eggs, which saw their price grow by 38% compared to the same period in 2021.
Fed increasing the interest rates isn’t the only thing behind more expensive groceries. Several other factors played a part, including avian flu among chickens that slashed egg production as well as a shortage of some other food items.
The skyrocketing food prices have caused Americans to adjust. According to American food giant Tyson Food, the demand for steaks has been declining as more customers are now turning to cheaper meats like chicken. The same trend was noted elsewhere, as many are turning to affordable food items and generic brands instead of sticking with high-priced options.