Tariffs, supply, weather, and changing consumer habits continue to drive up the cost of groceries. President Trump falsely claims prices are falling. The price of beef has risen 16.4 percent over the …
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Tariffs, supply, weather, and changing consumer habits continue to drive up the cost of groceries. President Trump falsely claims prices are falling. The price of beef has risen 16.4 percent over the last year. The price of coffee is up a whopping 19.8 percent. The price of lettuce is up 7.3 percent and frozen fish 8.6 percent.
Some of the things that factor into price — fertilizer, machinery, labor and fuel costs, weather, where food is grown, and what customers want — are difficult to control. Some of Mr. Trump’s actions, like tariffs and immigration crackdowns, have contributed to higher, rather than lower, costs. Low-income families are suffering the most, while middle-class shoppers are starting to take a hit.
Data released last Tuesday by the Bureau of Labor Statistics found the cost of food at home rose 2.4 percent overall in the previous 12 months and 0.7 percent in December alone, the fastest single-month increase since October 2022.
“Instead of buying steak, they’re buying ground beef and so forth,” Susan Morris, the chief executive of Albertsons, said on an earnings call last week. Ronald Sargent, the interim chief executive of Kroger, said last month that consumers were turning to promotions and store brands to save money. Both executives said they were beginning to see similar behavior from middle-income consumers.
Many products — coffee, tropical fruits and vegetables— that are primarily grown abroad have had their prices climb on the heels of increased tariffs.
In addition, tariffs are not only affecting the cost of food; they have driven up the cost of farming inputs, which are eventually reflected in price, as well as food packaging. Higher prices for canned and frozen foods, sodas and other drinks most likely reflect higher costs for aluminum and other packaging materials.
“Labor is clearly the biggest cost driver and makes up about 50 percent of our industry’s expenses,” said Cathy Burns, the chief executive of the International Fresh Produce Association. She said that limits placed on immigration had made it more difficult for farmers to find workers, and that labor costs in agriculture had been rising for a decade.
Facts used in this letter were lifted from a New York Times article published Jan. 14.
I suggest that if you find yourself paying higher prices for groceries, you give careful consideration to supporting leaders who are willing to stop the increasing tariffs and to support safety for all legal laborers.
DiAnn White
Ely