Soaring gas prices aren't the only reason Americans are paying more for groceries

"Prices for food eaten at home rose 2.9% in April compared to the same month a year earlier, according to government figures released Tuesday. That was the highest year-over-year inflation rate for the category since August 2023. Prices at restaurants, fast-food chains and other places to get prepared meals also increased, putting overall food prices up 3.2% in the last year, the Labor Department's consumer price index showed."

"Fuel prices have soared while the Iran war prevents cargo ships from passing through the Strait of Hormuz, a vital corridor for global oil supplies. Diesel fuel powers fishing boats, tractors and the trucks that ship 83% of U.S. agricultural products. As of Tuesday, the average price per gallon was up 61% from a year ago, according to AAA."

"The meat, produce and dry goods vendors that supply Sparrow Market, a small independent grocer in Ann Arbor, Michigan, all added fuel surcharges to their deliveries in recent weeks, owner Raymond Campise said. Wholesale prices for meat, produce and some other products also have gone up, he said. "For independent markets operating on narrow margins, even small increases can have a major impact," Campise said."

"The full impact of rising energy costs on food likely has not hit retail grocery prices yet in the U.S., according to Purdue University economists Ken Foster and Bernhard Dalheimer. Higher costs to produce, process, store and transport food can take three to six months to show up on supermarket shelves, where prices typically fall slowly once increased, they said. "Most of what we're seeing now in the food price chain probably predates the conflict," Foster, a professor of agricultural economics, said."

Prices for food eaten at home increased 2.9% in April compared with the same month a year earlier, the highest year-over-year rate for that category since August 2023. Prices for prepared meals at restaurants, fast-food chains, and other venues rose as well, lifting overall food prices by 3.2% over the last year. Fuel prices surged as the Iran war disrupted cargo ship passage through the Strait of Hormuz, affecting global oil supplies. Diesel fuel used in fishing, farming, and trucking became much more expensive, with the average U.S. gallon price up 61% from a year ago. Independent grocers reported adding fuel surcharges to deliveries, while economists noted retail impacts may take three to six months to appear.

Read at Fast Company