Bureau of Labor Statistics Data show that food prices have increased by 2.9% since last July, and wholesale prices on fresh and dried vegetables increased by almost 40% last month – the highest increase in the past three years. And the price increase should continue. For what? Donald Trump’s prices.
Producers already see the increase in costs. The price index of the producers of the Labor Department, a measure of inflation on wholesale goods and the costs of producers, increased by almost a percentage point from June to July. Bost prices increased by 3.3% compared to last July. These figures were significantly higher than expected from economists.
The data “indicates inflation with pipeline that may spread in consumer prices in the coming months,” Michelle Green told Axios, a former labor economist currently working at Corporate Planning Board.
According to the consumer price index, consumer prices have already increased on several foods. Prices increased by 5.8% on meat, 3.1% on poultry, 16.4% on eggs and 14.5% on coffee.
“Keep in mind, certain foods such as coffee, cocoa that is used in chocolate, we cannot grow them here, so we will be confronted at higher prices or to change what we drink,” said the food trends expert, Phil Lepertt, Wptv West Palm Beach.
Prices will probably also increase on other foods. Although for the moment, it seems that some companies eat the cost of prices, they will not be able to retain forever to push these growing costs to consumers.
“It will only be a matter of time before the producers succeed in their higher costs linked to the prices on the back of consumers tired by inflation,” PBS Christopher Rupkey, chief economist of the research company on the FWDBBB financial markets, in PBS.
These increasing prices will not only be limited to food. Home electronic prices, for example, increased by 5% in July compared to June. Basic prices for overall consumption increased from 2.9% in June to 3.1% in July, well above the target of the federal reserve of 2%.
Trump also dismissed the head of the Labor Department’s Labor Statistics Office, who produced the consumer price index because he did not like the July job figures, potentially submitting future office reports.
While wholesale and consumer prices have increased, demand from food banks, which has already been hit hard by federal shortages earlier this year and actions at the so-called Ministry of Government Effectiveness. The republicans of the “One Big Beautiful Bill” Congress adopted last month also reduced the services of the Nutritional Aid Program (SNAP) of $ 186 billion, which means that more people can turn to increasingly attached food banks to compensate for the loss of food aid.
