Get ready to fork out more for your Memorial Day BBQ celebrations as prices for common barbecue items such as hot dogs, potato chips, and hamburger buns surge. The April Consumer Price Index (CPI) by the Bureau of Labor Statistics reveals a 4.9% rise compared to April 2022. Overall, food costs increased by 7.7% in the past month, with grocery prices specifically showing a 7.1% rise.
For example, hot dogs and poultry prices witnessed a year-on-year increase of 2.2% and 5.0%, respectively. Although the cost of uncooked ground beef fell 2.1% compared to last year, it saw a monthly increase of 0.6%. The average price per pound of ground beef was $4.65 last month, marginally less than last year’s $4.70, but significantly higher than the $3.96 in 2020.
Wells Fargo’s chief agricultural economist, Michael Swanson, attributes the rise in beef prices to a drought affecting cattle supply. He anticipates a few years for the market to fully recover. However, the reasons for the increase in hot dogs and poultry prices are still unclear.
Prices of spices, seasonings, condiments, and sauces have also surged by 10.3% compared to last year. Major brands like Kraft Heinz have experienced a price increase, with Q4 prices 15.2% higher than the same period in the previous year.
Bakery items, including hot dog and hamburger buns, have seen their prices soar 12.9% over the year, led by a 14.3% rise in white bread prices. A pound of white bread now costs $1.96, the highest recorded price in BLS records dating back to 1980.
Sweet treats for dessert have become more expensive as well, with cakes, cupcakes, and cookies experiencing a 14.1% price increase. Cookie prices alone have rocketed by a whopping 15.9%.
Accompanying side dishes aren’t spared either. Swanson highlighted the seasonal nature of the sweet corn market, which has suffered from unfavorable weather conditions in California and Mexico. Fresh vegetable prices rose 1.4% year-on-year, with potatoes and lettuce increasing by 7.5% and 3.9%, respectively. Salad dressing costs also climbed by 14.8% year-on-year, despite a monthly decrease of 0.3%.
Snack aficionados will need to shell out more for favorite items like Lay’s Potato Chips and Doritos, as snack category prices soared by 10.1% compared to 2022.
In addition, alcoholic beverages and carbonated drinks saw price hikes of 4.6% and 11.9% respectively compared to last year.
Despite the cost surge, Swanson assures that there are no anticipated product shortages. While the market may not offer significant discounts, there is a good supply of products, he confirms.
©traders-news.online
