Food prices increase to a 50 year high
Tuesday, May 19, 2020 2:05 pm
Meat and egg prices at the grocery store make shoppers do a double take because they can't believe the increase in prices. Food prices have been on the rise since the beginning of the COVID-19 pandemic and they have reached a 50 year high.
As of April, inflation is only at 0.3%, but prices of food are wrecking household budgets. The low inflation rate is due to the 20.6% drop in gas prices as well as the decrease in prices for clothes, airline fares, lodging away from home prices, and vehicle sales.
According to the U.S, Bureau of Labor Statistics, the overall price of food increased 1.5% in April. Meat prices rose 4.3% and the price of eggs increased 16.1%. Cereal, bakery products, and nonalcoholic beverages are up by 2.9%. Dairy, fruits and vegetables are also up by 1.5%.
This is the highest increase since 1974. The prices have been explained by a combination of food processing plants closing, hoarding, and the inability of the supply chain to keep up with the demand of food.