Given that there is no end in sight to supply chain interruptions and that inflation is on the increase, consumers should prepare themselves for higher food costs for daily essentials beginning in 2022, ranging from coffee to mustard and from Oreos to Jell-O cookies.
Indeed, according to the Wall Street Journal, according to research company IRI, food costs are expected to climb by 5 percent in the first half of 2022, albeit the exact amount of the increase will vary from shop to store and from area to region.
These data represent the Consumer Price Index (CPI) figures, as the all-items CPI, a measure of overall inflation, increased by 6.8 percent from November 2020 to December 2020.
Furthermore, according to the Labor Department, food costs were 6.1 percent higher in November 2020 than in November 2019.
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According to where the food was bought, there is a difference in the amount of inflation in food prices: the consumer price index for food purchased away from home (restaurant purchases) climbed 0.6 percent in November 2021 and was 5.8 percent higher than in November 2020.
In comparison, the CPI for food purchased at home (grocery shop or supermarket purchases) climbed by 0.3 percent from October 2021 to November 2021 and was 6.4 percent higher than the CPI for food purchased at home in November 2020.
Vegetables, Snacks, And Beer Will Be More Costly in 2022
According to the Wall Street Journal, price hikes are expected to range from 2 percent to 20 percent in 2022 and affect all grocery store categories, including produce and packaged items.
According to the Wall Street Journal, grocery executives estimate that potatoes, celery, and other heavy vegetables would see the greatest price increases, owing in part to increasing freight expenses, as well as other factors.
In addition, wine, beer, and liquor, particularly those from foreign countries, are expected to become more costly.
Following the advice of industry insiders, the Wall Street Journal reports that pantry staples such as mayonnaise and frozen dinners are projected to become more expensive due to increasing labor, logistical, and packaging expenses.
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According to a transcript of an investor conference call obtained by The Motley Fool, Mondelez International, whose brand names involve Chips Ahoy, Ritz Crackers, Oreo, and Philadelphia cream cheese, recently announced that it would be increasing prices for such products by 6 percent to 7 percent beginning in January.
The company said that it has “taken and publicized pricing hikes in a large number of markets.” Notably, we announced a new round of pricing in the United States last month, which will take effect at the beginning of next year,” Luca Zaramella, the company’s chief financial officer, said during the conference call.
As a result, we have stated that we will also be distributing gum and sweets for each Biscuit (on average, that’s the number). Hall’s will be a little later in the cycle than the others. Overall, though, it is expected to be quite near to the 6 percent to 7 percent range. “
According to a document obtained by the Wall Street Journal, other firms planning to raise their prices include Kraft Heinz, which includes Jell-O pudding and Grey Poupon mustard, with certain goods seeing price increases of up to 20 percent.
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