This Grocery Item Finally Just Fell In Price
Lately, a trip to the grocery store can leave many people feeling overwhelmed. Everywhere you look, price tags are going up and the final receipt can look more like a major purchase than a quick trip to the market.
There is one item that has come down in cost, however, and it is one that is a staple in many kitchens. Fresh fruit has fallen in price, particularly citrus, which saw a 4.5% dip from May to June, according to CNN. Fruit has been experiencing some volume pressure, but has managed to much better prices in the last month after turning it around, according to Kelly Blue Book. Like a few grocery store products, it's not clear why the price has fluctuated but Florida citrus has been in season the last few months.
Fresh berries, bananas, apples, peaches, and more aren't the only grocery items to see this trend recently, either. Beef and veal prices fell 2.3%, as well as pork, which dropped 1.6%. Bacon, which saw a huge surge in price in February at almost 19% has finally dipped down a bit. Currently, the favorite breakfast meat is now at close to 2% less than in May.
While it's clear that prices haven't fallen as much as they've risen, any trend down is a hopeful prospect. And although it may take some time, experts believe grocery store prices as a whole to eventually dwindle.
"While consensus has largely given up on the 'transitory' story for inflation, we still think most of the sources of today's high inflation will abate, and even unwind in impact, over the next few years," said Preston Caldwell, head of U.S. economics for Morningstar to CNBC in an interview.
According to Caldwell and research from Morningstar, more price decreases will be seen toward 2023. However, these don't necessarily represent the bigger picture of what's happening in the industry overall.
The U.S. Bureau of Labor Statistics (BLS) reported food prices were up about 10.8% in April before jumping to over 12% in June compared to the year before, making it increasingly difficult to see the light at the end of the tunnel.
And itts not just price increases either, but shrinkage and other tricks companies are employing to mitigate loss that consumers end up paying for. For instance, Frito-Lay which produces products like Lay's, Doritos, and Cheetos chips said it would be looking into alleviating ongoing inflation issues with a possible combination of different tactics to offset the impact inflation is having on its company.