Rising Food Prices Will Continue, Thanks to Trump's Trade Wars
By: Peter Wade (Rolling Stone)
... yeah, but he cut taxes for billionaires.
S E E D E D C O N T E N T
Bureau of Labor Statistics data shows food prices have spiked by 2.9 percent since last July, and wholesale prices on fresh and dry vegetables increased by nearly 40 percent last month — the biggest increase in the last three years. And rising prices are likely to continue. Why? Donald Trump's tariffs.
Producers are already seeing rising costs. The Labor Department's producer price index, a measure of inflation on wholesale goods and producer costs, increased by nearly one percentage point from June to July. Wholesale prices are up by 3.3 percent over last July. These numbers were significantly higher than economists predicted.
The data "points to pipeline inflation that's likely to spill into consumer prices in the months ahead," Michelle Green, a former Labor Department economist currently working at corporate planning firm Board, told Axios.
According to the Consumer Price Index, prices for consumers have already risen on several foods. Prices have increased by 5.8 percent on meat, 3.1 percent on poultry, 16.4 percent on eggs, and 14.5 percent on coffee.
"Keep in mind, certain foods like coffee, cocoa that's used in chocolate, we can't grow these here, so we're going to be faced with higher prices or changing what we drink," food trends expert Phil Lempert told WPTV West Palm Beach.
Prices will likely increase on other foods as well. While for now, it seems some companies are eating the cost of tariffs, they won't be able to hold off forever on pushing those rising costs to consumers.
"It will only be a matter of time before producers pass their higher tariff-related costs onto the backs of inflation-weary consumers," Christopher Rupkey, chief economist at financial markets research firm fwdbonds told PBS.
These rising prices will not just be limited to foods. Home electronic prices, for example, rose 5 percent in July as compared to June. Core consumer prices overall increased from 2.9 percent in June to 3.1 percent in July, far above the Federal Reserve's goal of 2 percent.
Trump has also fired the head of the Labor Department's Bureau of Labor Statistics, which produces the Consumer Price Index because he didn't like the July jobs numbers, potentially putting into question future reports by the bureau.
As wholesale and consumer prices have risen, so has the demand on foodbanks, which were already hit hard with shortages due to federal budget cuts earlier this year and actions at the so-called Department of Government Efficiency. The "One Big Beautiful Bill" congressional Republicans passed last month also cut Supplemental Nutrition Assistance Program (SNAP) benefits by $186 billion, meaning more people may be turning to increasingly strapped food banks to make up for the loss in food assistance.
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don't forget to punctuate your "I told you so" with a right cross or a knee to the crotch when you hear maga consumers complain ...
Just sickening that anyone believes that Trump's tariffs do not and will not force higher prices.
tariffs on the produce coming in and nobody to pick the produce we grow domestically. I wonder how that's working out for flyover americans now ...
I still have fresh veggies and meat. Thanks for the concern....
thanks for taking the time to leave your busy seed to comment on mine ...
No problem.
The price of hamburger, per pound, is now higher than the national minimum wage. Well done.
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80% lean hamburger is $3.49 per lb where I live. Eggs have stabilized at $2.99 a dozen. Milk is on sale this month for $2.99 a gallon. Potatoes, onions, and bananas are $0.29 a lb. White bread is available on sale for $0.99 a loaf, regularly $1.50. Canned vegetables stabilized at $0.85 a can earlier this year.
Yeah, we're still seeing some prices rise but it's nothing like it was 2-3 years ago.
Don't know where you're at but food prices are and have been fairly stable in my neck of the Southwest.
you mean right down at the border where a lot of produce crosses into the US?
gee, go figure ... /s
Wow, you need to move..............
It's pretty much the same here in North AND South Carolina as Doc's comment states.
Tariffs are a flat tax so they can't cause prices to rise continuously. Prices will rise until the tariffs no longer have an impact on investors. But there is a limit on how much of a price increase can be blamed on tariffs.
Current price increases haven't only been affected by tariffs, either. Trump's changes to immigration policy without a transition period will also affect prices for this harvest season. Mexico is experiencing labor shortages and drought conditions which will impact import prices. Weather in Mexico and the United States also had a significant impact in food prices (which has been attributed to climate change). Conditions in South America won't have any influence until the growing season begins.
The bottom line is that changing tariff policy alone won't lower prices. There are too many other factors involved. And the claim that businesses have been absorbing tariffs demonstrates that passive investors bear considerable responsibility for price increases. Tariffs are only one contributor to price increases so eliminating the tariffs won't return to pre-tariff prices.
I can't wait for the next argument from Mr G about how I don't know anything rising grocery costs
... you can buy salt peter and estrogen over the counter. fix his maga ass ...
I'll block his C-pap
can you set a bed frame leg on the hose or block the intake with one of his dirty socks?
I have to wait for dirty socks. He doesn't wear socks this time of year
... me neither. when my nike's start to smell like a corpse, I just buy a new pair. which sucks, because I'm too cheap to throw them out. I have 14 pairs of the exact same sneaker now ...
He wears sandals even to work. He doesn't wear shoes.