Grocery store prices are continuing to surge due to the coronavirus (COVID-19) pandemic. Although almost every other industry and product’s prices are dropping, grocery prices are continuing to soar.
What’s Happening With Grocery Store Prices?
People are stocking up on supplies out of fear and for some a necessity. Due to previous closures of facilities due to health and safety caused workers to be behind in output. People are now eating at home more now than ever, and eating out on a less frequent basis.
Sanjib Bhuyan, associate professor at Rutgers University’s Department of Agriculture, Food and Resource Economics, explained to Today that the food prices are rising because there is not enough food to meet the demand. “[It is] Mainly due to the fact that the agri-food supply chain is currently unable to deliver when and where food is needed due to the shortage of labor, particularly at farm level,” he said.
“Food price gains were robust as we know there are empty shelves out there,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, told TODAY. “Demand we know in most areas of the economy has collapsed and prices are falling in response.”
“We’ve obviously seen this record increase in unemployment filings, and so there are more people who are at risk in that sense that they literally don’t have any employment to secure the money that they would need to buy the food that they traditionally purchase,” CEO of Bolthouse Farms, Jeff Dunn told Fox News. “For the people who are already operating on the margins, these price increases are nontrivial.”
Prices For Products
Furthermore, dairy products are experiencing a steep increase in pricing. In March to April alone, dairy products reportedly saw a 1.5% price increase. Egg prices are now up 16.1% alone.
Instant coffee is up 2.5% while roasted coffee is retailing for 1.2% above the average price. If you’re looking for a doughnut, you’ll be paying roughly 5% more now.
Certain types of beef have increased by 3.7% while poultry increased by 4.7%. Surprisingly, certain locations are seeing a larger price increase in certain foods. Dallas and Fortworth Texas’ ground beef prices rose by a whopping 14.5%. Chicken in Los Angeles soared by 26%.
The good news is that overall fruits and vegetables haven’t significantly increased their prices. Longer lasting vegetables and fruits have been increased by roughly 2%.