With grocery food inflation still topping 10%, the mid-March Bureau of Labor Statistics report on consumer prices pegged year-over-year inflation at 6% in February.
Overall, consumer prices increased 0.4% in February on a seasonally adjusted basis, a slight decline from the 0.5% increase in January.
Higher costs for shelter contributed the most to inflation, but higher prices for food, recreation and furnishings also contributed to higher prices.
While fruit and vegetable inflation is relatively tame compared to other food groups, the grocery food index rose 10.2% over the last 12 months. The consumer price index for cereals and bakery products rose 14.6%.
The remaining major grocery store food groups posted increases ranging from 5.3% (fruits and vegetables) to 12.4% (other food at home).
The index for restaurant food rose 8.4% over the last year, with the index for full-service meals rising 8%, and the index for limited-service meals rose 7.2% over the same period.
Here are the year-over-year inflation numbers for select categories:
- All items: 6%.
- Food: 9.5%.
- Food away from home: 8.4%.
- Full-service meals and snacks: 8%.
- Limited-service meals and snacks: 7.2%.
- Food at home: 10.2%.
- Eggs: 55.4%.
- Dairy: 12.3%.
- Fresh fruits and vegetables: 2.6%.
- Fresh fruits: 0.4%.
- Apples: 5.6%.
- Bananas: 4.6%.
- Citrus fruits: -1.2%.
- Oranges, including tangerines: -0.4%.
- Fresh vegetables: 5.3%.
- Potatoes: 13.5%.
- Lettuce: 10.4%.
- Tomatoes: 3.4%.
EDITOR’S TAKE:
Consumers are still experiencing inflation rates that outpace more modest increases in wages. This scenario has forced many consumers to pull back on major purchases and, in some instances, they have been forced to dig into savings for the basics. Meanwhile the agricultural economy is in excellent shape by comparison. Record or near record net farm income the past three years, coupled with rising land values, has placed farmers/ranchers in solid financial standing. This is why we keep urging you to put farmers/ranchers at the top of your customer prospect list. Put your inventory on AgTruckTrader.com – a site that is free for CAD members and specifically targets farmers/ranchers in your area. Also, be sure to let them know about AgPack®, that unique combination of exclusive rebates and discounts that can be worth up to $30,000!
