Zincwarrior
Diamond Member
What it says on the tin. Wholesale vegetables rose 40% in July. Whats the cause?
abcnews.go.com
Wholesale prices soared much faster than economists expected last month, stoking concern among some economists about an eventual pass through to consumer prices.
The fresh government data this week showed an eye-popping 38% surge in the wholesale price of vegetables in July, the biggest price spike for any product category. A continued rise of that magnitude could noticeably hike vegetable prices at restaurants and grocery stores within a matter of months, some analysts told ABC News.
The latest report came as consumers await a possible burst of inflation as President Donald Trump's tariffs take hold. Importers typically offset the tax burden in the form of higher prices for shoppers, though so far tariff-induced price increases have proven marginal.
When asked about whether the jump in vegetable prices had resulted from tariffs, analysts shrugged. Wholesale vegetable prices often fluctuate from month to month, they said, pointing to an array of possible explanations that includes adverse weather, supply chain blockages and tariff-induced cost increases.
"People are really curious about when tariffs are likely to have consequences for consumers. We're all keeping an eye out," Parke Wilde, a food economist at Tufts University, told ABC news. "But I don't want to jump the gun based on one segment of one index."
The U.S. imports more than a third of its fresh vegetables, according to U.S. Department of Agriculture data released in January. A product category made up of such a sizable chunk of imports is vulnerable to tariff-induced wholesale price increases, some analysts said.
Importers of perishable foods like vegetables face an especially acute challenge because they cannot stockpile products ahead of tariffs, since the fresh produce would rot. Toy or apparel retailers, by contrast, could fill warehouses with products imported at pre-tariff rates.
"This could be the impact of tariffs," David Ortega, a food economist at Michigan State University, told ABC News. "But it could be a whole host of things."
Sweetgreen, a restaurant chain that primarily sells salads and grain bowls, earlier this month faulted tariffs in part for a 3.6 percentage-point decline in restaurant-level profit over three months ending in June, when compared to the same period a year earlier.
Still, analysts said, the spike in wholesale prices may be the result of factors unrelated to tariffs.
Are tariffs to blame for nearly 40% spike in wholesale vegetable prices? Experts weigh in
Are tariffs to blame for nearly 40% spike in wholesale vegetable prices? Experts weigh in
The wholesale-price spike may eventually hike prices for shoppers, experts said.
abcnews.go.com
The fresh government data this week showed an eye-popping 38% surge in the wholesale price of vegetables in July, the biggest price spike for any product category. A continued rise of that magnitude could noticeably hike vegetable prices at restaurants and grocery stores within a matter of months, some analysts told ABC News.
The latest report came as consumers await a possible burst of inflation as President Donald Trump's tariffs take hold. Importers typically offset the tax burden in the form of higher prices for shoppers, though so far tariff-induced price increases have proven marginal.
When asked about whether the jump in vegetable prices had resulted from tariffs, analysts shrugged. Wholesale vegetable prices often fluctuate from month to month, they said, pointing to an array of possible explanations that includes adverse weather, supply chain blockages and tariff-induced cost increases.
"People are really curious about when tariffs are likely to have consequences for consumers. We're all keeping an eye out," Parke Wilde, a food economist at Tufts University, told ABC news. "But I don't want to jump the gun based on one segment of one index."
The U.S. imports more than a third of its fresh vegetables, according to U.S. Department of Agriculture data released in January. A product category made up of such a sizable chunk of imports is vulnerable to tariff-induced wholesale price increases, some analysts said.
Importers of perishable foods like vegetables face an especially acute challenge because they cannot stockpile products ahead of tariffs, since the fresh produce would rot. Toy or apparel retailers, by contrast, could fill warehouses with products imported at pre-tariff rates.
"This could be the impact of tariffs," David Ortega, a food economist at Michigan State University, told ABC News. "But it could be a whole host of things."
Sweetgreen, a restaurant chain that primarily sells salads and grain bowls, earlier this month faulted tariffs in part for a 3.6 percentage-point decline in restaurant-level profit over three months ending in June, when compared to the same period a year earlier.
Still, analysts said, the spike in wholesale prices may be the result of factors unrelated to tariffs.
