Page 22 - THE SOUTH CHINA BUSINESS JOURNAL
P. 22
C. TODAY
4 Factors Driving
Food Price
Inflation
By U.S. Chamber of Commerce
Labor shortages. Supply chain disruption. Labor shortages
Higher energy prices.
Perhaps the single biggest factor contributing
These aren’t the things that come to mind when to higher food prices is the fact that food
people think about Thanksgiving. But when they manufacturers can’t find enough workers to meet
head to the grocery store to do their food shopping demand, which is a dynamic nearly every industry
or go to a restaurant with their family for their has been experiencing since the pandemic. There
Thanksgiving meal this year, those three issues will are not enough workers to unload containers in
certainly be evident in the cost of their bill. ports, for instance, and not enough truck drivers to
move the food to distributors and stores.
“Anyone who has purchased food lately knows that
food prices are rising and rising pretty sharply,” “It’s extraordinarily difficult to attract and
said Curtis Dubay, senior economist for the U.S. retain new employees,” says Andrew Harig, Vice
Chamber of Commerce. President of Tax, Trade, Sustainability, & Policy
Development at the Food Marketing Institute.
The cost of eating out at a restaurant is about Harig noted that more than 80% of FMI members
4.7% higher than it was at this time last year, for provided bonuses and increased benefits to attract
instance, while grocery store and supermarket and retain workers since the pandemic and it still
purchases are 5.3% higher than a year ago. To put hasn’t helped much to ease the labor burden.
that in perspective, during the decade prior to the
start of the pandemic the average annual increase “You’re competing against not only the food supply
in grocery store and supermarket purchases was chain, but also with other consumer goods supply
only 1.3%. Overall, prices across the board are up chains,” he says.
6.2% this year, the highest level since 1990.
While this is not a new issue, it’s one that has been
During a recent U.S. Chamber of Commerce event, exacerbated by the pandemic. Currently, there’s
food industry leaders discussed the complex stew not enough new entrance into the industry, and it’s
of factors driving food price inflation and why this more difficult to mitigate these problems as they
could be, as some headlines have suggested, the grow more severe in today’s climate.
most expensive Thanksgiving ever.
“Getting people back to work easing that labor
19 AMCHAM SOUTH CHINA supply is No. 1,” said Harig. “It's not a silver bullet.
It won't solve all of the problems, but it is the
necessary first step to do this.”
4 Factors Driving
Food Price
Inflation
By U.S. Chamber of Commerce
Labor shortages. Supply chain disruption. Labor shortages
Higher energy prices.
Perhaps the single biggest factor contributing
These aren’t the things that come to mind when to higher food prices is the fact that food
people think about Thanksgiving. But when they manufacturers can’t find enough workers to meet
head to the grocery store to do their food shopping demand, which is a dynamic nearly every industry
or go to a restaurant with their family for their has been experiencing since the pandemic. There
Thanksgiving meal this year, those three issues will are not enough workers to unload containers in
certainly be evident in the cost of their bill. ports, for instance, and not enough truck drivers to
move the food to distributors and stores.
“Anyone who has purchased food lately knows that
food prices are rising and rising pretty sharply,” “It’s extraordinarily difficult to attract and
said Curtis Dubay, senior economist for the U.S. retain new employees,” says Andrew Harig, Vice
Chamber of Commerce. President of Tax, Trade, Sustainability, & Policy
Development at the Food Marketing Institute.
The cost of eating out at a restaurant is about Harig noted that more than 80% of FMI members
4.7% higher than it was at this time last year, for provided bonuses and increased benefits to attract
instance, while grocery store and supermarket and retain workers since the pandemic and it still
purchases are 5.3% higher than a year ago. To put hasn’t helped much to ease the labor burden.
that in perspective, during the decade prior to the
start of the pandemic the average annual increase “You’re competing against not only the food supply
in grocery store and supermarket purchases was chain, but also with other consumer goods supply
only 1.3%. Overall, prices across the board are up chains,” he says.
6.2% this year, the highest level since 1990.
While this is not a new issue, it’s one that has been
During a recent U.S. Chamber of Commerce event, exacerbated by the pandemic. Currently, there’s
food industry leaders discussed the complex stew not enough new entrance into the industry, and it’s
of factors driving food price inflation and why this more difficult to mitigate these problems as they
could be, as some headlines have suggested, the grow more severe in today’s climate.
most expensive Thanksgiving ever.
“Getting people back to work easing that labor
19 AMCHAM SOUTH CHINA supply is No. 1,” said Harig. “It's not a silver bullet.
It won't solve all of the problems, but it is the
necessary first step to do this.”
