By: 247wallst.com's Alex Kent
With gas prices below $2 per gallon — about half of what they were less than two years ago — many are feeling a little relief at the pump. At the grocery store, however, the price of basic food items such as eggs, meat, and bread have all increased by at least 40% in recent years, despite tame national inflation.
Using data from the Bureau of Labor Statistics (BLS), 24/7 Wall St. examined consumer price changes from 2005 through 2015 for more than 300 goods and services. These are the some of the reasons why grocery items are driving up your bill the most.
- Sickness and disease of livestock are the primary reasons for many food price increases.
- Particularly dry or extremely rainy seasons in food growing regions can also have a significant impact on consumer food prices.
- Higher global demand is another reason food prices may increase.
- Rising food prices not only increase Americans’ grocery bills, but also can impact restaurants, which could be forced to amend portion sizes or entire menus to stave off shrinking margins.
These are the groceries driving up your bill the most. Definitions for each food category also came from the BLS.
19. Bacon and related products
Prices of bacon and related products, including all cuts of bacon and breakfast sausage, increased by 34.5 percent from 2005 through 2015, just higher than the 31.5 percent price increase of food generally.
18. Flour and prepared flour mixes
Demand for grain as well as production shortfalls due to extreme weather have undercut grain surpluses worldwide. Flooding and droughts in the United States, too, have whittled away grain surpluses, likely contributing to the price increase. From 2005 through 2015, consumer prices of U.S. flour products, which are made from grain, rose by nearly 35 percent.
17. Propane, kerosene, and firewood
While gas prices have recently fallen well below $2 per gallon, energy prices were not always this low. Price increases in this category were part of a larger trend from 2005 through 2015. Consumer prices of propane, kerosene, and firewood increased by more than 35%.