Food Costs Surging

Meat and produce lead price gains in the latest Consumer Price Index.

April 17, 2014

NEW YORK – The March Consumer Price Index was released earlier this week and revealed a 0.4% increase in food costs, Slate reports. For the year, food costs have increased 1.4%.

Meats, poultry, fish and eggs posted the biggest price gain in March at 1.2%, while dairy prices were up 1.2%. Fresh fruit surged 3.1% and fresh vegetables were down 1.6%, with the combined fruits and vegetable index gaining 0.9%.

The upward trend in food prices is “somewhat worrisome,” said Chris Christopher, an economist at IHS Global Insight, because it means consumers will be spending more of their income on groceries, leaving less money for other items — a drain on the economy.

Meat prices have risen faster than nearly every food category, with a deadly pig virus and shrinking cattle herd contributing to the increase. Meanwhile, prolonged drought and a harsh winter have blighted produce, causing prices overall to rise.

Christopher said the increases comes at an inopportune time for low-income families, following across-the-board cuts to SNAP, the food stamp program, last November. IHS said food prices might taper off by the third quarter this year.

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