Inflation: ‘Food at Home Index Rose 13.5 Percent Over the Last 12 Months, the Largest 12-Month Increase Since the Period Ending March 1979’
Gas went down, but electric services at home increased 2.1%.
How much would you like to bet that President Joe Biden’s administration will only concentrate on falling gas prices to spin the August inflation report as a positive for him?
Inflation rose 0.1% in August to 8.3%. Taking out the volatile items (food and energy), inflation rose 6.3% over the last 12 months.
Consumers are still feeling the pain at the grocery store (emphasis mine):
The food at home index rose 13.5 percent over the last 12 months, the largest 12-month increase since the period ending March 1979. The index for other food at home rose 16.7 percent and the index for cereals and bakery products increased 16.4 percent over the year. The remaining major grocery store food groups posted increases ranging from 9.4 percent (fruits and vegetables) to 16.2 percent (dairy and related products). The index for food away from home rose 8.0 percent over the last year. The index for full service meals rose 9.0 percent over the last 12 months, and the index for limited service meals rose 7.2 percent over the last year.
You could consider the three eggs in my lunch a luxury item!
Plus, you cannot keep up with an increase in prices when the pay is in the negative.
Here's the chart for non-supervisory workers. Their pay adjusted for inflation is -2.4% in the past year. pic.twitter.com/MUlu0S8ceL
— Heather Long (@byHeatherLong) September 13, 2022
Prices Over 12-Month Period
Everything increased in the 12-month period ending August 2022. Everything.
Here are some stats that stood out the most to me:
- Rent of primary residence: +6.7%
- Airline Fares: +33.4%
- Eggs: +39.8%
- Butter and margarine: +29.3%
- Other motor fuel: +53%
- Health insurance +24.3%
- Public transportation: +21.1%
Prices From July to August
All major grocery store food categories increased by 0.7% in August.
- Other food at home: +1.1%
- Cereals and bakery products: +1.2%
- Meats, poultry, fish, and eggs: +0.5%
- Fruits and vegetables: +0.5%
- Nonalcoholic beverages: +0.3%
- Dairy and related products: +0.3%
Food away from home increased +0.9%. If you think you’re paying more for lunch at school and work? You are!
- Food at employee sites and schools: +19.3%
The food at home and away from home index combined rose 11.4%, “the largest increase since the period ending May 1979.”
Overall energy went down 5.0% thanks to Energy Commodities. However, I cannot wait for September’s inflation report because gas prices went down in OKC, but now they’re going up again.
Anyway, here are the stats for Energy Commodities:
- Energy commodities overall: -10.1%
- Fuel oil: -5.9%
- Motor fuel: -10.5%
- Gasoline (all types): -10.6%
But energy services increased 2.1%, which are the sources for the home:
- Electricity: +1.5%
- Utility (piped) gas services: +3.5%
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Comments
In my experience that 13.5% is a low ball number. A very low ball number.
Many food items I purchase regularly are up 25-40% or more. Especially when factoring in smaller package contents weights for the same physical size package. For example, that 8 oz package of cheese is now 7 oz and costs 25% more. Likewise for items like potato chips.
Also, sale prices are much, much higher than they were 12-18 months ago. The government doesn’t consider sale prices in their data collection and calculations. Boneless chicken breasts that were on sale for $1.99 lb are now on sale for 2.99 to 3.99. Or more.
Add in there is no doubt in my mind The Regime is pressuring the bureaucrats who calculate this to get it as low as possible. For several reasons. Among them their political agenda, upcoming elections, and that the Social Security COLA is tied to the inflation rate.
Agreed. Food price inflation is going to continue. Consider this fall’s harvest. Farmer planted based on x projected net profit based on, among other things, estimated price of fuel required at harvest. The increased cost of just that one input, fuel, may make the entire harvest untenable, so much so that outside of contract penalties they might just leave in the ground.
Affordable/reliable fuel and energy are the lifeblood for a modern economy. We lack those to some degree here, Europe is far worse off in the short term. If the environmental cult has their way we will be in the same boat.
We are likely looking at 8%+ CPI for the fiscal year. Which means every payment linked to that will rise substantially next year; Social Security being prominent but some some employment contracts are tied to it as well. Except for military pay rates which are proposed to increase in the next budget less than 3% with the Army suggesting that Soldiers should apply for food stamps.
I don’t know how they measure it, but I am certainly not paying merely 13.5% more on many things, either.
Economists knew food was going up. It was just a matter of how high.
What floored me was how many of them were blindsided when the price of Services increased. Really? I’m not an Economist and I saw that coming. And, hang on because the price of services has a lot farther to go.
I have said for months that the changes in inflation measurement from a fixed basket of goods in the 1970’s, and subsequent changes, would make the current inflation rate, as previously measured at least 50% higher then reported. You mentioned shrinking sizes that now gets hidden. A big one is substitution, like sirloin steak for filet mignon.
Since they switched “poverty” from a fixed baseline to relative to average income, making things worse reduces poverty, right?
Clever.
True, and that definition of poverty makes eliminating it impossible, even if the poor lived liked kings.
The democrat party just passed the inflation reduction act. No way anything will inflate.
Stolen elections have consequences.
Everyone be sure to thank the responsible party. That would be the pedophile-in-chief, the dementia-ridden retard Biden.
Tell all your Democrat friends that it is a free country and they can vote for anyone they want.
But, if they vote for the Democrats this election, they are voting for the Economic collapse of their own finances.
I shop at Costco. Their bagels and muffins have gone up 40%. I am comparing my old receipts to the new ones.
Bidenomics are KILLING this country.
Don’t make me tell you what I paid for heating oil. No need for both of us to cry…
Well, it’s a good thing illegal immigrants are being taken care of. Everyone agrees they should have priority over citizens.
Naturally, this will not be an issue in the election in November. According to the polls, the biggest concern of the majority of Americans is abortion.*
*Marked /s/ for the sarcasm impaired
Get with the program. Abortion is indeed the most important issue, if you are not going to be able to afford to take care of the baby. /s
Good point!
Actually I think that the most important issues in November will be a) will the putative election actually “happen” or be delayed/cancelled due to some “emergency, and b) if it does happen, will the actual count of votes of over 18-years-old US citizens be determinate or will it be the numbers concocted in back rooms?
Events that can be labelled “c” will happen based on the answers to “a” and ‘b”.
Subotai Bahadur
The crescendo of hoaxes, phony accusations and lawfare against Trump is growing fast. It will be insane by November. All of their gaslighting about impending insurrection may just be the prelude to voting-related actions. Another round of voting station intimidation? Vote-by-mail is a done deal and apparently, it is being coordinated from the White House this time.
If the current administration had not tapped the Strategic Petrol Reserve down to historic levels of Empty, we would be seeing double-digit inflation even after they frantic tweaking of numbers that has been done by the ‘independent’ experts. Eventually, that oil will run out and inflation will rocket right up into the sky again. The Dems hope that will be after the midterms so they can blame Republicans. Well, they’re going to blame Republicans anyway, but…
Good point!
I’d put a significant portion of blame on the policies of the current administration, but I don’t want the Freaks, Bozos, and Imbeciles to label me a “domestic terrorist” and put me on the naughty list. LOL.
ps – I swear our demented pedo hair-sniffin’ leader was looking me straight in the eye while pounding his fists during the “red speech”. Another LOL.
Well, today the local diner didn’t have turkey sandwiches.
You can’t get a restaurant supply turkey breast at any price, from any distributor, anywhere in this 350,000-ish pop city, formerly modern, US city. They say 6-weeks, maybe, til the turkey returns.
Yeah, it’s a First World Problem. But why go backwards? It’s unfair?! How about we bring everybody up to First World, and beyond? Turkeys for everyone, not just in politics!
Extinction Rebellion is at least up front: they hate humans, n want us extinct. OK, they hate themselves, perhaps with good reason, and see themselves in us, so we all must die.
The rest busy blowing up everydamnthing need to get past the Bill and Ted cosplay. “We’re not worthy!” So, apparently, reduce the world to what they are worth. Even mud huts and dung fires are beyond that, but these clowns haven’t thought that through. They’ll be surprised right before the extinction takes them — cold comfort for the rest of us.
They are drunk on the frissons of guilt, and blame, and some ego on the cheap feeling superior to the folks that don’t get it. Non-drinkers get drunk on a glass of near-beer. Had they ever tasted the wine of actual worth, they’d no longer be moved by such dreck.
Get Woke and Go Broke with …Cramer.
Are we
having funusing the R-word yet?The WH won’t use it but the Fed Reserve is bringing it because they have no option. The fed raises rates to take liquidity away while the Biden WH and d/prog in Congress simply spend more. Until fiscal restraint matches monetary restraint rates go higher and the force of the upcoming hard landing increases. A soft landing is a pipe dream.
You will eat bugs and be happy comrades… Buckle up, this is just the beginning.
Economists were blindsided. They do not buy food, and they don’t use electricity or natural gas. They have their thumb in their ear, which is difficult when their head is lower on the body.
Food prices are up for a variety of reasons. Avian flu forced the culling of chickens. Drought either killed cattle in the thousands. Fruits and vegetable crops didn’t meet expectations. Growers were forced to cut down fruit trees again due to drought conditions. These are multi-year impacts and will contribute to high food inflation for the foreseeable future.
On top of this, the stimulus and other spending packages contribute to inflation. Add in the student loan forgiveness, providing more cash to spend.
The practitioners of the dismal science belief that Modern Monetary Theory solves all problems are once again proven wrong, at our expense.
Not only are food prices higher but, we get hit with another significant impact, i.e. package quantities have been reduced. That’s the “cost” which is rarely mentioned.