New Data Shows Food Inflation May Have Finally Reached Its Peak
If you're tired of dealing with and hearing about inflation (how could you not be?), you might not have to endure it for much longer.
You've probably heard the long-and-short of it by now, but to recap, the exorbitant prices that have been raging in restaurants and grocery stores, gas stations, and other industries since mid-2021 are the product of a slew of clashing issues. On top of standard inflation causes, such as high demand and low production, current inflation rates are made worse by factors including the war in Ukraine and global supply chain backups left over from the early months of the pandemic, per Stanford economist John Taylor.
Taylor notes that inflation rates jumped from 1.4% between January 2020 and January 2021 to 9.1% between June 2021 and June 2022. Per the U.S. Bureau of Labor Statistics, the overall price of food at home increased 13.5% over the fiscal period that ended in August, which hasn't happened since 1979. Experts have been telling us that inflation rates are expected to go down around mid-2023, per Forbes. And those projections might be right on track, according to new data.
October saw the slowest month-to-month drop since December 2021
The U.S. Bureau of Labor Statistics published Consumer Price Index data in October that reveals a 7.7% drop in overall inflation rates from this time last year, Grocery Dive reports. Per the outlet, the data also shows that the food-at-home index grew by 0.4% between September and October, which is the slowest month-to-month jump since December 2021. Prices might not start significantly falling until the new year, and consumer prices are still rising quickly compared to years past.
CNBC notes that essential commodities such as shelter, food, and energy saw high inflation rates in October. And Grocery Dive writes that grocery products such as cereal, baked goods, dairy, and fruits and vegetables are still pricier than ever. That said, Grocery Dive posits that the current numbers might indicate that this year's record-high inflation rates have reached their peak. And what goes up must come down.