Food prices generally fell a seasonally adjusted 0.4% in July, the first decline since April of last year, the Bureau of Labor Statistics reported Wednesday. House food prices fell 1.1% in July, compared with a 0.7% increase in June.
Shopping costs have increased during the pandemic as demand has increased. While there is no shortage of food, failures in supply chains have tightened the supply of items reaching stores, causing prices to rise.
Now, it looks like prices are starting to stabilize. Meat prices eventually fell after rising in May and June,
From June to July, meat and veal prices fell by 8.2%. Uncooked beef roast and steaks got 8.7% cheaper. Pork prices fell 3.2%. Consumers pay 5.7% less for ham and pork chops, and 2.6% less for chicken.
But there was one type of meat that became more expensive: hot dogs, which have been in high demand. Prices jumped 2.4% last month, perhaps in part due to the July 5th holiday.
The fall in meat prices comes as activity of producers begins to return to normal. In the spring, major meat processors shut down their plants because workers fell ill with Covid-19, as operations were delayed to allow for new safety practices. Production dropped and prices went up.
From April to May, the price of meat and poultry increased by 10.8%. Uncooked beef steak prices jumped 11.6%. The prices of Pork chops went up by 8.4%. Hot dogs got 1.6% more expensive. From May to June, the prices of meat and veal graves increased by 4.8%. Uncooked beef steak prices went up 5.1%, and pork chops got 4.3% more expensive. Prices for hot dogs peaked at 4.9%.
The meat sector is not yet fully back to normal. By Tyson (TSN), one of the world’s largest meat processors, some plants “continue to operate at reduced production levels,” said CEO Noel White during a recent analyst call discussing the company’s financial results. But all plants were in operation in early August.
Other groceries also became cheaper in July.
Egg prices fell 4%. Carrots were 3.1% cheaper. Peanut butter prices fell by 2.4%. Breakfast cereals got 1.8% cheaper. Prices for fresh cakes and cupcakes fell 1.5%, and cheese was 1.6% lower.
But a few categories became more expensive: Soup went up by 1.2%, salad got 1.6% more expensive and margarine prices jumped 2.2%.
