Each time a consumer steps into the grocery store, they can’t help but notice the increasing prices. There’s no doubt we are experiencing massive inflation, and groceries are one of the areas where families are seeing it the most. Many people want to know why inflation is greatly impacting the cost of our groceries.
According to a USDA Report, in 2020, expenditures on food were estimated at an average of about 12% of an American’s household budget. Since the report was released is it evident that the percentage has increased, consuming more and more of a family household budget.
The most obvious impacts that producers and consumers have faced are the lingering pandemic and the recent conflict between Ukraine and Russia. These may be the most talked about, but there is a much bigger picture to look at for the answers.
Inflation and Food
“Inflation is defined as a general rise in prices which causes a decline in purchasing power of consumers and producers over time, holding all other factors constant,” according to the University of Kentucky.
On a domestic level, food is shipped and distributed across long distances. Fruits and vegetables that are grown in more temperate climates to provide out-of-season products must be distributed across states and/or countries.