You’ve probably noticed prices spiking at the grocery store.
From February to June, meat and poultry prices rose about 11%, according to the Bureau of Economic Analysis, which tracks personal consumption expenditures to measure inflation. Beef and veal prices recorded the highest increase, spiking 20%. Pork spiked 8.5%.
Egg prices were up 10% while cereal and fresh vegetables saw a 4% increase.
Part of the reason: more people are staying at home, driving up the demand for groceries during the pandemic. In addition, they’re eating out less.
But that’s not the only reason prices are up.
Disruptions in the supply chain have created scarcity and higher prices, even though there’s no significant food shortage.
Early in the pandemic, major meat processors closed when employees became sick. Since then, operations have slowed due to new safety practices, tightening the supply. Many of those plants still aren’t at full capacity.