ARLINGTON, Va. – FMI – The Food Industry Association warns that higher energy costs continue to drive up food prices, adding pressure on consumers and retailers as grocery inflation persists.
Responding to the latest Consumer Price Index (CPI) report from the U.S. Bureau of Labor Statistics, FMI said Tuesday that food-at-home prices rose 0.4% in October, reflecting the delayed impact of rising fuel and transportation costs across the food supply chain.
“October’s CPI report shows that food prices rose as the pass-through of higher recent energy costs continues to work its way through the grocery supply chain,” said Andy Harig, FMI’s vice president of tax, trade, sustainability and policy development.
The report showed that prices for meats, poultry, fish and eggs rose 0.5% during the month, driven in part by a 0.9% increase in beef prices. Fruits, vegetables and dairy products each rose 0.6%.
FMI stressed that energy costs influence every stage of the food supply chain, including agricultural production, manufacturing, packaging and distribution. Higher diesel and fuel expenses can take months to reach retail prices, prolonging inflationary pressures even after the initial cost increases occur.
“When fuel and diesel costs rise, those higher costs are ultimately reflected in what it takes to produce and deliver food, and it can take months for them to show up in grocery prices, which we are now witnessing,” Harig said.
The association also highlighted potential challenges ahead, including global supply chain disruptions and adverse weather conditions that could affect crop production, transportation, and commodity availability.
Harig said retailers remain focused on absorbing and managing costs wherever possible while ensuring consumers have access to affordable products.
“Despite these headwinds, food retailers will continue working every day to manage costs, maintain dependable supplies and deliver the quality, choice and value shoppers expect,” he said.
