By | Rachel Brooks
Staff | Telegraph Local
Above, U.S. grocery prices spike the highest they have in 46 years, ABC News broadcast.
U.S. grocery costs jump the most they have in 46 years. This is led by rising prices for meat and eggs. CNBC reported the 46-year-record-breaking statistics on Tuesday, May 12. CNBC cited the U.S. Labor Department as its initial source. The Labor Department reported Tuesday that U.S. consumer grocery prices spiked by 26% in April, which is the highest cost spike in a single month since February 1974.
The price spike has risen by commodity. Meat and eggs have spiked by 4.3%, fruits and vegetables have spiked by 1.5%, and cereals and bakery products have spiked by 2.9%. Grocery price spikes are in contrast to other U.S. commercial costs, which declined 0.8% during the month of April.
The Consumer Price Index, if one is to exclude the volatility of food and energy markets, has declined by 0.4%. This is the greatest decline of CPI Records dating back to 1957.
CNBC interviewed Peter Boockvar, the chief investment officer of Bleakley Advisory Group. Boockvar has observed the damages to the grocery market caused by the COVID-19 era market volatility.
“Food price gains were robust as we know there are empty shelves out there. Demand we know in most areas of the economy has collapsed and prices are falling in response,” said Bookvar, as quoted by CNBC.
“In areas where demand has hung in, like ‘food at home’ we have inflation because the supply side has been damaged, whether directly via infected facilities or because of the higher costs of finding freight capacity,” added Bookvar, as he was further quoted by CNBC.
CNBC attributes the grocery spike for some goods as being created by the stock-up of consumers who flocked stores to prepare for COVID-19 lockdowns.
To put the cost hike for meat products in context, yesterday May 12, Nathan Kauffman, the Omaha Branch Executive of Kansas City Fed agriculture, posted beef price spike stats to Twitter.
“Today’s CPI release showed a 7.5% increase in retail beef prices in April compared with last year, even before the extreme increase in wholesale prices more recently. Increases in other meat product retail prices also the largest in about 5 years amid supply chain disruptions,” said Kauffman showing the data chart for 2020 beef costs. The data was retrieved from analytics partners of the Wall Street Journal. These stats show an uncommonly high spike in May, after a steady CPI increase for beef in April.
U.S. Senators have also taken to the Twitter platform to discuss the unusual hikes. The Senators propose increased legislation to amend key issues driving cost spikes.
“Joined my friend @chuckgrassley to introduce a bill that will provide necessary transparency in the cattle industry so producers get paid a more fair price for their product,” said Senator Rounds of South Dakota, via an official page tweet. Senator Rounds then retweeted an original post by Senator Chuck Grassley of Iowa.
“2day I introd bill updated frm 2002 2bring more price transparency to cattle sales+get fair value for Iowa beef Proud 2stand w IA Cattlemen 2 safeguard independent producers &protect USA beef supply Some help fr WH as
asked DOJ 2investigate collusion w/in packers,” said Grassley via Twitter.
The New York Times has archived the cost spike in 1974 for comparison. The cost prices in 1974 deviated from the U.S.D.A’s general estimates that had been off by an error margin of 10 per cent. Farmers would have needed to produce record crops and turn out record livestock to accommodate the spike.