Surging grocery bills are busting Americans' food budgets. Everything from meat and eggs to fruit and pasta have seen steep price hikes over the last year. Several key economic factors are driving up costs across the entire food production chain:
The war in Ukraine has severely impacted grain production and cooking oil exports from that fertile region, constricting global supplies. Russia's role as a key fertilizer exporter has also been hindered. This perfect storm for crops has raised basic food commodity prices everywhere.
Similarly, climate disruptions like droughts and floods have damaged many crop yields worldwide in recent years. Farmers' costs for transport fuel, livestock feed, and wages have markedly increased as well. Low supply and high input costs trickle upward into what consumers ultimately pay. Even packaging prices have risen.
As if that wasn't enough pressure, avian flu outbreaks have impacted poultry and egg output and pricing. And renewed dining out demand is also competing for ingredients.
Unfortunately until multiple supply chain stressors ease and weather normalizes boosting food production, economists warn that stiff tailwinds will keep forcing food costs higher across all categories. Shoppers must get savvier with budgets, deals and meal plans.





