US food prices have surged 2.9% since last July, with wholesale vegetable costs jumping nearly 40%. Rising prices are likely to continue due to Donald Trump’s tariffs. Producers are seeing increased costs, and economists warn that pipeline inflation will spill over into consumer prices.
Wholesale prices on fresh and dry vegetables increased by the biggest margin in three years, surpassing economists’ predictions. The Labor Department’s producer price index rose nearly one percentage point from June to July. Meanwhile, consumers have already seen price hikes on several food groups: meat (5.8%), poultry (3.1%), eggs (16.4%), and coffee (14.5%).
Experts say that as producers absorb the costs of tariffs, they won’t be able to hold off on passing them to consumers forever. Christopher Rupkey, chief economist at fwdbonds, stated, “It will only be a matter of time before producers pass their higher tariff-related costs onto inflation-weary consumers.”
Home electronics prices have also risen, with a 5% increase in July compared to June. Core consumer prices rose from 2.9% in June to 3.1% in July, above the Federal Reserve’s goal of 2%. The firings of key officials at the Labor Department may impact future reports on inflation.
As food banks face increased demand due to federal budget cuts and SNAP benefits reductions, the rising price trend is a concern for those struggling with food insecurity. With tariffs set to persist, consumers can expect higher prices across various sectors.
Source: https://www.rollingstone.com/politics/politics-news/rising-food-prices-trump-trade-wars-1235410245