Fears over inflation are rising as new Labor Department statistics showed that consumer prices in the United States have increased more than 4% in the last year, the strongest surge since 2008.
According to Jayson Lusk, an agricultural economist at Purdue University, “we are beginning to see such higher farm product prices turn up in higher retail food prices.” “If you just look at the year-over-year shift, it doesn’t seem to be out of the ordinary. However, I believe the cumulative impact is beginning to show up in the numbers.
Corn prices were limit down at one point on Thursday, but this follows a $1 rise in just two weeks. Commodity prices could continue to climb, contributing to the inflation debate.
“At the moment, it looks like those high commodity prices may be with us,” says Lusk. “I think we’ll probably continue to see that in our food prices and our meat prices.”
In May, wholesale option beef rates hit levels not seen since the pandemic’s initial periods. It’s going to be a costly and difficult return to normal, with additional costs and labor challenges for those struggling to satisfy clients.
Consumers are paying more for more than just food. According to Labor Department reports, used car and truck rates rose by more than 10%, a new high.
Worries over inflation caused stocks on Wall Street to fall for the third day in a row, as investors fear the Federal Reserve would hold interest rates down to benefit the economy.