The Labor Department reported Tuesday that prices US consumers paid for groceries increased 2.6% in April, marking the largest one-month increase since February 1974.
As the price of certain meats went up 4.3%, fruits and vegetables climbed 1.5%. Cereals and baker products went up 2.9%. US prices in general fell 0.8% for their largest one-month drop since 2008.
These grocery numbers stand in stark contrast to the broader trend in U.S. prices, which decline 0.8% in April for their largest one-month decline since 2008.
“Food price gains were robust as we know there are empty shelves out there,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, wrote in an email. “Demand we know in most areas of the economy has collapsed and prices are falling in response.”
Not including food and energy components, the so-called CPI dropped 0.4%–the largest decline ever since records started being kept in 1957.
“In areas where demand has hung in, like ‘food at home’ we have inflation because the supply side has been damaged, whether directly via infected facilities or because of the higher costs of finding freight capacity,” Boockvar added.
Reports are stating that some people are turning to farmers for their food. The Blakley Family Farm has been operating in Oologah for decades. Right now, they are seeing the most business ever, while adding many people are growing their own plants. Moreover, the farm can barely keep their meat on their shelves.