Food and beverage manufacturing, like all sectors of the U.S. economy, is facing uncertainty in 2023 with a looming recession on the horizon.
The September 2022 Consumer Price Index and Producer Price Index numbers show that food prices are continuing to rise month-over-month more than three times faster than the general U.S. economy inflation rate.
Russia’s invasion of Ukraine, fighting that involves two countries that account for nearly 30 percent of the world’s wheat exports, has sparked food supply concerns around the globe with fears of grain shortages and escalating prices.
Ukraine, which has been called the breadbasket of Europe because of its key agricultural exports, reported in May that the country’s grain exports were down 64 percent year-over-year.
Flowers have been a go-to gift on Mother’s Day for more than 100 years, but beautiful bouquets from local florists in 2022 could be in short supply due to supply chain woes, labor shortages and inflation.
U.S. inflation surged to a four-decade high of 8.5 percent in March thanks in part to skyrocketing food costs.
The last time Americans saw prices rise as fast at the grocery store or at their local diner was in December of 1981 in the early days of Ronald Reagan’s first presidential administration.
Rising food prices, along with escalating energy costs, helped push U.S. inflation to a 31-year high in October with the Consumer Price Index jumping 6.2 percent.
“Food prices for both groceries and dining out rose by the most in decades,” The Wall Street Journal reported.
The U.S. Bureau of Labor Statistics reported on Nov. 10, 2021, that the Consumer Price Index for All Urban Consumers (CPI-U) increased 0.9 percent in October on a seasonally adjusted basis after rising 0.4 percent in September.