Grocery inflation highest since 2022 as Trump tariffs pile up

Zincwarrior

Diamond Member
Joined
Nov 18, 2021
Messages
40,136
Reaction score
24,074
Points
2,488
Location
Central Texas
Grocery inflation highest since 2022 as Tariff impacts pile up. Coffee is up nearly 20% year over year.

Data: Bureau of Labor Statistics; Chart: Axios Visuals
President Trump spent his 2024 campaign promising Americans he'd lower grocery prices.

  • Virtually all major grocery categories are now more expensive than they were a year ago, some substantially so.
Why it matters: Trump's economic polling numbers are about the worst they've ever been, and almost on par with the worst of the Biden presidency.




  • Whatever growth the administration says is coming from its trade and industrial policy, nothing is more vivid to households than what they pay to feed themselves.
Driving the news: The food-at-home component of the Consumer Price Index rose 0.6% in August from July, the Bureau of Labor Statistics said on Thursday.

  • This was the biggest month-over-month increase since August 2022, the tail end of a year of huge monthly increases in grocery prices.
The big picture: Trump has framed his tariffs on China, steel and other imports as a way to protect American workers and bring down costs.

  • But those same trade barriers can raise input costs — from fertilizer to machinery to transportation — that ripple through food prices.
  • Grocery chains, already facing higher wholesale costs, say they are trying to avoid passing the increases along to shoppers where possible.
State of play: Retailers including Walmart have said they have had to increase some prices.

  • Kroger CFO David Kennerley said Thursday that the chain's approach is to "raise prices as a last resort, to ensure that we keep prices as low as possible."
  • Interim CEO Ron Sargent said they've lowered prices on more than 3,500 products across stores, which is "improving our price spreads against our major competitors."
By the numbers: Broad price increases last month hit key items that have been subject to Trump's tariffs, including groceries.

  • Coffee is up 20.9% year-over-year, with a 3.1% monthly increase, per CPI.
  • Uncooked beef steaks are up 16.6% year-over-year with a 3.3% monthly bump.
  • While fruits and vegetable overall were up 2.3% year over year, apples rose 9.6% and bananas, 6.6%.
What they're saying: Bankrate analyst Stephen Kates tells Axios that each month's increase may add only a few cents to individual items, or a few dollars to a shopping trip, but over time it adds up.
 
I've noticed the 30% ground beef in our area has climbed significantly to $5.99 a pound last time we bought some. Not blaming Trump for all that as head to market numbers this year are way way down due to drought affecting feed availability, but there are a lot of moving parts in price inflation. It isn't just tariffs. Increased wages are also a factor.
 
Grocery inflation highest since 2022 as Tariff impacts pile up. Coffee is up nearly 20% year over year.

Data: Bureau of Labor Statistics; Chart: Axios Visuals
President Trump spent his 2024 campaign promising Americans he'd lower grocery prices.

  • Virtually all major grocery categories are now more expensive than they were a year ago, some substantially so.
Why it matters: Trump's economic polling numbers are about the worst they've ever been, and almost on par with the worst of the Biden presidency.




  • Whatever growth the administration says is coming from its trade and industrial policy, nothing is more vivid to households than what they pay to feed themselves.
Driving the news: The food-at-home component of the Consumer Price Index rose 0.6% in August from July, the Bureau of Labor Statistics said on Thursday.

  • This was the biggest month-over-month increase since August 2022, the tail end of a year of huge monthly increases in grocery prices.
The big picture: Trump has framed his tariffs on China, steel and other imports as a way to protect American workers and bring down costs.

  • But those same trade barriers can raise input costs — from fertilizer to machinery to transportation — that ripple through food prices.
  • Grocery chains, already facing higher wholesale costs, say they are trying to avoid passing the increases along to shoppers where possible.
State of play: Retailers including Walmart have said they have had to increase some prices.

  • Kroger CFO David Kennerley said Thursday that the chain's approach is to "raise prices as a last resort, to ensure that we keep prices as low as possible."
  • Interim CEO Ron Sargent said they've lowered prices on more than 3,500 products across stores, which is "improving our price spreads against our major competitors."
By the numbers: Broad price increases last month hit key items that have been subject to Trump's tariffs, including groceries.

  • Coffee is up 20.9% year-over-year, with a 3.1% monthly increase, per CPI.
  • Uncooked beef steaks are up 16.6% year-over-year with a 3.3% monthly bump.
  • While fruits and vegetable overall were up 2.3% year over year, apples rose 9.6% and bananas, 6.6%.
What they're saying: Bankrate analyst Stephen Kates tells Axios that each month's increase may add only a few cents to individual items, or a few dollars to a shopping trip, but over time it adds up.
The US has done well to absorb the extra tariff tax so far.Its probably caused lower profits and investment.
Its all connected.
 
Grocery inflation highest since 2022 as Tariff impacts pile up. Coffee is up nearly 20% year over year.

Data: Bureau of Labor Statistics; Chart: Axios Visuals
President Trump spent his 2024 campaign promising Americans he'd lower grocery prices.

  • Virtually all major grocery categories are now more expensive than they were a year ago, some substantially so.
Why it matters: Trump's economic polling numbers are about the worst they've ever been, and almost on par with the worst of the Biden presidency.




  • Whatever growth the administration says is coming from its trade and industrial policy, nothing is more vivid to households than what they pay to feed themselves.
Driving the news: The food-at-home component of the Consumer Price Index rose 0.6% in August from July, the Bureau of Labor Statistics said on Thursday.

  • This was the biggest month-over-month increase since August 2022, the tail end of a year of huge monthly increases in grocery prices.
The big picture: Trump has framed his tariffs on China, steel and other imports as a way to protect American workers and bring down costs.

  • But those same trade barriers can raise input costs — from fertilizer to machinery to transportation — that ripple through food prices.
  • Grocery chains, already facing higher wholesale costs, say they are trying to avoid passing the increases along to shoppers where possible.
State of play: Retailers including Walmart have said they have had to increase some prices.

  • Kroger CFO David Kennerley said Thursday that the chain's approach is to "raise prices as a last resort, to ensure that we keep prices as low as possible."
  • Interim CEO Ron Sargent said they've lowered prices on more than 3,500 products across stores, which is "improving our price spreads against our major competitors."
By the numbers: Broad price increases last month hit key items that have been subject to Trump's tariffs, including groceries.

  • Coffee is up 20.9% year-over-year, with a 3.1% monthly increase, per CPI.
  • Uncooked beef steaks are up 16.6% year-over-year with a 3.3% monthly bump.
  • While fruits and vegetable overall were up 2.3% year over year, apples rose 9.6% and bananas, 6.6%.
What they're saying: Bankrate analyst Stephen Kates tells Axios that each month's increase may add only a few cents to individual items, or a few dollars to a shopping trip, but over time it adds up.
Its still the Biden economy
 

New Topics

Back
Top Bottom