Seafood Prices Soar 18%... US Grocery Basket Inflation Jumps

[Asia Economy Reporter Yujin Cho] Bloomberg reported on the 6th (local time) that the prolonged COVID-19 pandemic has caused prices of seafood and poultry to rise further, severely impacting grocery prices in the United States.

According to NielsenIQ data, U.S. seafood prices have risen an average of 18.7% so far this year (as of the end of last month), marking the largest increase. Prices of bakery products such as bagels, donuts, and roll cakes, staples for Americans, increased by 6.5% to 7.6%. Among the 52 grocery items tracked by NielsenIQ, prices of 50 items, excluding butter and milk, have all risen compared to a year ago.

Source: NielsenIQ

Major U.S. retailers Albertsons and Safeway stated that due to continued high demand, they do not plan to run price reduction promotions for the time being. The overall rise in prices of groceries, including seafood, is interpreted as a result of increased home-cooked meal demand caused by COVID-19.

As many households cook at home instead of dining out due to the pandemic, grocery demand has steadily increased. Additionally, the expansion of vaccinations and cash payments from stimulus packages have unleashed suppressed consumption, leading to a larger increase in prices.

John Peyton, CEO of Dine Brands Global, which operates restaurant chains IHOP and Applebee’s, said that prices of basic goods such as poultry and pancake mix are rising, making nationwide menu price increases inevitable by the end of the year.

International oil prices and raw materials, indicators of consumer recovery, are also pushing price increases higher. The Bloomberg Commodity Spot Index, which tracks 23 raw materials, surged to its highest level in 10 years as of the 6th. Due to expectations of economic recovery combined with abnormal weather, prices of various raw materials such as grains, copper, and iron ore have risen to multi-year highs. The report noted that rising labor costs due to restaurant staffing shortages and supply bottlenecks in manufacturing are currently driving prices up, and inflationary pressures are expected to intensify further.

This content was produced with the assistance of AI translation services.