Unfortunately for Inflation-weary consumers2025 will not bring any immediate postponement Food costs The rise is expected to continue due to environmental factors and recent disease outbreaks that threaten food safety.
As of December, overall food inflation was 2.5% year over year, according to the Bureau of Labor Statistics. Summary of the consumer price index. Grocery prices (described as “food at home”) rose 0.3% month-on-month in December, while dining costs (also known as “food away from home”) saw a similar rise.
Average annual food prices at home increased by five percent in 2023 compared to 2022, According to the US Department of Agriculture (USDA). The administration found that the prices of fats and oils rose by 9%, which is the highest increase among food products in 2023. The prices of sugar and sweets also increased by 8.7%, while the prices of cereals and bakery products increased by 8.4%. Increases were also observed in beef and veal (3.6%), eggs (1.4%), fresh vegetables (0.9%), fresh fruits (0.7%), and fish and seafood (0.3%).
The recent price rise cannot be attributed to just one factor; The Wall Street Journal Reported for the first time. A recent — and ongoing — bird flu outbreak has killed chickens across the country, thus driving up egg prices.
The cost of eggs has been rising since 2022, when US officials confirmed A A highly contagious strain of bird flu (H5N1) in a commercial herd. Last June, a flock of about 103,000 turkeys in Cherokee County, Iowa, was infected with avian influenza, according to the US Food and Drug Administration. Iowa Department of Agriculture and Land Management. Another outbreak was reported among a flock of about 4.2 million egg-laying hens in Sioux County, Iowa. In December, a patient in Louisiana was hospitalized with a serious case of H5N1 avian influenza, the Centers for Disease Control and Prevention (CDC) said. certain. Since April 2024, 61 human cases of H5N1 avian influenza virus have been reported within the United States.
“Eggs are one of the main drivers of food price inflation,” wrote Patrick Thomas and Jesse Newman of the Wall Street Journal. “Eggs are up 37% from a year ago, according to the latest Labor Department figures, and the average retail price for a dozen large eggs rose nearly 14% to $4.15 in December.”
In California – where A Emergency The announcement was made due to growing concerns about bird flu, which has spread between dairy cattle and humans – and the average cost of a dozen eggs is now $8.97. Barron reported. As of recently, the average cost of a carton of eggs is $4.85 per dozen, according to the USDA.
“The outbreak has the potential to impact the prices of poultry and even dairy products as well,” said Megan Leonhardt of Barron’s. “Bird flu was first detected in dairy cows in March 2024 and resulted in reduced milk production.”
Prices are likely to fall if the number of bird flu cases begins to diminish. But given that the outbreak is still widespread ( Most recent eruption afflicting the last major commercial duck farm on Long Island), and that doesn’t seem likely at the moment. In fact, U.S. producers are expected to face more outbreaks and a smaller supply of eggs this year.
Besides bird flu, harsh environmental conditions and national disasters have caused food prices to rise. Persistent drought conditions in the Western and Sahel states have threatened livestock livelihoods, forcing many producers to begin reducing their herds.
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“When drought conditions reduce feed production and availability, beef cattle producers often must purchase feed and supplemental feed or reduce the size of their herd.” The US Department of Agriculture explained. “More severe periods of drought are associated with declines in U.S. beef cattle herd size, such as when the national beef cattle herd shrank by about 1 to 2 percent annually during the 2011-2015 drought.”
Data from the Bureau of Labor Statistics found that sirloin prices have increased 38% since 2019 while ground beef prices have risen 45%. Sirloin steak prices An average of $11.67 per pound in December, compared to a November high of $12.01 per pound. Ground beef prices averaged $5.61 per pound in December, compared to $5.67 in September.
Meat and eggs aren’t the only food items whose prices are rising. Some of our favorite desserts have also become more expensive because… High cocoa costs And sugar. The Wall Street Journal reported that an unnamed candy company would raise its prices by 10%. Likewise, Conagra Brands will raise prices for Swiss Miss hot cocoa and Duncan Hines products. The high cost of cocoa beans, fueled by climate change, has also encouraged major snack companies such as Hershey and Mondelez to continue raising their prices.
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