Panic Buying Contributed to Higher Retail Food Prices
WASHINGTON, DC – Grocery store prices were 5.6 percent higher in June 2020 than during the same month one year ago and increased for every category except fresh fruits.
According to the Economic Research Service, many of these increases were influenced by the coronavirus pandemic and the corresponding supply chain disruptions.
As schools were closed and stay-at-home orders issued, the dairy industry had to quickly adapt, which added pressure to prices due to a spike in retail demand (5 percent price increase).
Retail beef and veal prices were 25 percent higher in June than one year earlier as much of the livestock increase occurred after February when panic buying from consumers and packing plant closures due to coronavirus outbreaks resulted in the supply chain bottlenecks. In addition, egg prices increased by more than 12 percent, pork increased almost 12 percent and poultry prices expanded almost 9 percent year over year.
(SOURCE: Economic Research Service)