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Food Price Increases Highest In Almost A Decade
Since the beginning of the pandemic, the cost of many food items has risen to record highs because of increased demand, reduced supply, and major shortcomings in manufacturer's supply chains.
The increase in price was to be expected as shutdowns across the world affected the production of goods, but what wasn't to be expected was that prices would stay inflated even after production returned to normal.
According to an article by NBC News, the prices of some meats increased by 30% during the early months of the pandemic and continue to be much higher than they were at the beginning of the year. The prices are slowly dropping, but will may not return to pre-COVID levels anytime soon.
The main reasons that manufacturers cited for the increase in price - reduced production due to social distancing restrictions, supply chain disruption, and increased demand - have pretty much gone away, but the prices remain high.
In June of this year, Grocery Dive cited a USDA report that estimated a 3% overall increase in grocery cost. If this turns out to be true, it will be the largest increase year over year since 2011.
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