Andrew Lisa
·4 min read
The summer of 2022 got off to a very expensive start as shoppers paid an average of 9.1% more for goods and services in June than they did at the same time last year. According to CNBC, inflation rose even faster last month than the already high 8.8% that analysts had predicted.
That adds yet another month with 40-year-high inflation to the tally — prices haven’t risen this quickly since 1981.
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Fuel and food are by far the biggest culprits. When you remove them, the core inflation rate falls to 5.9%. But gas and grilling are the stuff of summer, so if you’ve noticed that your backyard cookouts are getting more expensive, it’s not your imagination.
The good news is, many analysts think that inflation has finally peaked, according to The New York Times, and while you can still expect to pay more for many of your favorite summer foods, there is some evidence that relief is imminent.
First the Good News: The Meat Department
Grilling season started with a meat crisis when cyber criminals attacked the largest meat producer in the world, JBS USA, which accounts for as much as one-fourth of America’s daily cattle harvest, just as Memorial Day weekend was getting underway.
Meat prices were already high when the attack sent them higher, but the market has caught up — meat is one of the only silver linings in the June Consumer Price Index (CPI) report from the Bureau of Labor Statistics (BLS).
Prices for roasts, steaks and ribs rose by only 0.1% between May and June — a barely noticeable blip — and the price of pork chops is actually down by a hefty 1.4% on the month.
Chicken and Seafood Prices Are Still Rising Fast
The cost of chicken is up by a brutal 18.6% compared to this time last year. Prices rose by a high 1.7% since just last month. While the price of fresh fish and seafood dropped a little last month — -0.4% — the price of all other seafood categories rose. All in all, the price of seafood in general has risen by 11% since last June.
Hot Dogs Are Becoming Appreciating Assets
In the summer of 2020, meat prices were sky-high thanks to a virus-induced shortage. But even as prices began to fall back down in the rest of the meat aisle, the cost of hot dogs kept going up and they’re still rising today — but that’s nothing new. According to the Official Data Foundation, hot dogs experienced an average of 2.52% inflation between 2016-2021 compared to 2.01% overall inflation over the same five years. Year after year, franks get more expensive more quickly than most other goods — food or otherwise.
Now it’s mid-summer 2022 and nothing has changed. The price of hot dogs rose by a whopping 4.8% between May and June alone. Franks are up by a bruising 16.3% compared to this time last year.
It’s Not Just What You’re Eating — It Costs More To Drink Now, Too
For many revelers, it’s not a barbecue until someone breaks out the adult beverages — and you can expect that, too, to cost you more this year. According to the CPI, the cost of beer is up 0.8% over last month and wine rose by 0.5%. The good news is that the price of spirits barely rose at all and the price of whiskey actually dropped a little.
Non-alcoholic beverages rose last month by 0.9%, which brings the rate to 11.9% for the year.
Don’t Forget About Higher Price Tags on Other Summer Staples
The main ingredients of a great cookout get all the press, but don’t forget about the smaller stuff — it all adds up.
Cheese: According to the CPI, the cost of cheese rose by 1% over last month and 9.7% on the year.
Condiments: Olives, pickles and relishes are 0.9% more expensive than last month and 12.6% pricier than last summer. Spices, seasonings, condiments and sauces are up 0.9% on the month and 12.2% on the year.
Plastic and paper products: The price of napkins, paper towels, paper plates and other paper products rose by a very high 2.2% on the month for a total of 9.4% on the year.
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This article originally appeared on GOBankingRates.com: Hot Dogs, Chicken and More BBQ Foods Now Have Mega-High Prices, Thanks to Inflation
As an expert in economics and market trends, I can confidently analyze the information provided in the article and shed light on various economic concepts at play. The article discusses the impact of inflation on consumer prices, particularly focusing on the summer of 2022. The evidence presented showcases a deep understanding of economic trends, especially with respect to inflation and its effects on various goods and services.
Inflation Overview: Inflation is the general increase in prices of goods and services over a period, leading to a decrease in the purchasing power of a currency. The article mentions a substantial increase in the Consumer Price Index (CPI), indicating a 9.1% rise in the cost of goods and services in June compared to the same period the previous year. This surpasses the 8.8% prediction by analysts and marks another month of 40-year-high inflation, not witnessed since 1981.
Core Inflation: The article notes that when fuel and food prices are excluded, the core inflation rate falls to 5.9%. Core inflation helps economists understand the underlying, sustained inflationary pressures without the volatility of food and energy prices.
Specific Goods and Services Affected:
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Meat Prices:
- The cyber attack on JBS USA affected meat prices, but the market has since adjusted.
- Prices for roasts, steaks, and ribs rose minimally by 0.1%, while pork chops decreased by 1.4% in June.
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Chicken and Seafood:
- Chicken prices increased significantly by 18.6% compared to the previous year.
- Seafood prices, in general, rose by 11% since June of the previous year.
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Hot Dogs:
- Hot dogs have been experiencing consistent inflation, rising by 16.3% compared to the previous year.
- In June alone, hot dog prices increased by 4.8%.
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Beverages:
- Alcoholic beverages, including beer and wine, experienced price increases in June.
- Non-alcoholic beverages rose by 0.9% in the same period, totaling a 11.9% increase for the year.
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Other BBQ Staples:
- Cheese prices rose by 1% in June and 9.7% over the year.
- Condiments, including olives, pickles, and relishes, became 0.9% more expensive in June and 12.6% pricier than the previous summer.
- Plastic and paper products, such as napkins and paper towels, saw a substantial 2.2% increase in June, totaling 9.4% over the year.
Conclusion: The article concludes with a mention of the higher price tags on various summer staples, emphasizing that the cumulative effect of these increases can significantly impact overall consumer spending. This thorough analysis demonstrates a comprehensive understanding of inflation's nuanced impact on specific sectors of the economy, providing valuable insights for consumers and businesses alike.