The Labor Department reported Wednesday that while meat prices declined in the last weeks of 2021 the annual rate of food inflation rose to 6.3%. The U.S. inflation rate for the past 12 month was 7%, the highest level since June 1982.
Since last June, when it was 2.4%, the annualized food inflation rate has been rising. The main reason for this is the persistently high prices of meat. “The index for meats, poultry, fish, and eggs declined in December, falling 0.4% after rising at least 0.7% in each of the last seven months,” said the Consumer Price Index report. “The indexes for beef (-2.0%) and pork (-0.8%) declined after recent sharp increases.”
The November rate of 6.3% saw the food inflation rate rise by 0.2 points. Grocery prices increased 6.5% over the year, more that four times the usual rate 1.5%. “By far the largest increase was that of the index for meats, poultry, fish, and eggs, which rose 12.5% over the year despite falling in December,” said the Labor Department. The price of food outside of home, which includes food from restaurants, takeout and cafeterias at work and school was up 6%.
The CPI report was available here.
Source: Successful Farming