January 30, 2023
The meteoric rise in food prices slowed slightly in December, per a new analysis from Axios' Kavya Beheraj — but prices were still up more than 10% year-over-year, as groceries and restaurants gobbled up a larger-than-usual amount of Americans' spending, Alex Fitzpatrick writes.
Why it matters: Grocery bills are one of the most powerful ways in which many Americans experience inflation.
By the numbers: Nationwide, the cost of all foods was up 10.4% year-over-year in December, per the U.S. Bureau of Labor Statistics.
Zoom in: Dallas, the Twin Cities, and Baltimore are suffering some of the country's highest food price inflation rates, at 14.1%, 13.7%, and 13.5%, respectively.
Driving the news: COVID-related supply chain disruptions, climate change, and higher energy costs are just some of the factors contributing to higher food prices.
The intrigue: Some businesses have noticed that while consumers may gripe about higher costs, they're willing to pony up, as the New York Times recently reported — disincentivizing them from bringing prices back down to Earth.
The big picture: Rising prices aren't just changing the kinds of food Americans are buying, as Axios' Emily Peck recently reported — they're forcing some families to buy less food entirely.
What we're watching: There are some glimmers of hope on the horizon.