Food prices are too damn high; here’s what can bring them down
Rising food costs have become one of consumers’ biggest headaches. For many, it’s turned into a full-blown crisis.
In August, home food preparation costs and dining out prices were up 13.5% and 8% from last year, respectively.
Some of the highest increases in food costs: eggs (39.8%), chicken (16.6%) and flour (23.3%).
Why are food costs so ridiculously high?
- Avian bird flu outbreak impacted the supply of chicken.
- Ukraine war sent wheat, soybean and other food commodity prices up.
- Crop damage from severe droughts across the globe.
When will food prices go down?
That’s the question on everyone’s mind, but luckily, we’re already seeing signs of falling food prices.
The U.N.’s Food Prices Index — which tracks the prices of five breadbasket staples — cereals, vegetable oil, dairy, meat and sugar — has fallen for five consecutive months.
Here’s what could continue lowering food prices:
- Ukraine has reopened its shipping ports under a July deal with Russia to unblock grain exports.
- Transport (i.e., shipping and gasoline) costs are falling. These costs make up one of the largest portions of food costs.
But we’re not out of the oven yet.
- Bad weather conditions could send prices soaring before the harvesting season ends.
- Global warming could continue to impact food costs.