ARLINGTON, Va. – FMI – The Food Industry Association said higher energy costs are putting renewed pressure on grocery prices, as the latest Consumer Price Index (CPI) figures show food-at-home prices increased by 0.4% in October.
In a statement released Tuesday, FMI Vice President of Tax, Trade, Sustainability and Policy Development Andy Harig attributed the increase to rising fuel and diesel costs that continue to filter through the food supply chain.
“October’s CPI report shows that food prices rose as the pass-through of higher recent energy costs continues to work its way through the grocery supply chain,” Harig said.
According to the U.S. Bureau of Labor Statistics, prices for meats, poultry, fish and eggs rose 0.5% in October, with beef prices up 0.9%. Fruits, vegetables and dairy products each rose 0.6%.
Harig emphasized that energy costs affect nearly every stage of food production and distribution, from agricultural operations and processing to packaging and transportation.
“When fuel and diesel costs rise, those higher costs are ultimately reflected in what it takes to produce and deliver food, and it can take months for them to show up in grocery prices, which we are now witnessing,” he said.
FMI also cautioned that global developments and shifting weather conditions could pose additional challenges for food retailers and suppliers in the months ahead, particularly if they disrupt growing conditions, transportation networks, or commodity supplies.
Despite these pressures, Harig said retailers remain focused on controlling costs and delivering value to consumers.
“Despite these headwinds, food retailers will continue working every day to manage costs, maintain dependable supplies and deliver the quality, choice and value shoppers expect,” he said.
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