Commodity Prices Have Limited Influence on U.S. Food Inflation

Cortney Cowley and Francisco Scott

Economic Bulletin, 2022, issue September 23, 2022, 4

Abstract: Food prices increased at the fastest pace in more than two decades from July 2021 to July 2022. We show that this increase has not been driven by commodity prices but by an increase in consumer spending on food at home and increases in costs along the supply chain. Our results suggest that food inflation could ease if consumers shift more purchases back to food service establishments and if costs in food processing and marketing abate. Conversely, food inflation could remain high if broader measures of inflation persist.

Keywords: Prices; Consumers' expenditure; Inflation (Finance) (search for similar items in EconPapers)
JEL-codes: E31 (search for similar items in EconPapers)
Date: 2022
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