Food Prices Soar, and So Do Companies’ Profits

Diane English, an 80-year-old partly retired artist who lives with her partner in Asheville, N.C., said she now shops at lower-price grocery stores like Aldi so she can afford her groceries. She also has stopped buying certain foods because they’re simply too expensive.

“I can’t remember the last time we had steak,” said Ms. English. A couple of weeks ago, she said, she looked at the meat department at the Fresh Market, a grocery store chain, and was dispirited at the high prices she found.

“We’re not going to do that,” she said. “We can’t.”

Over the last year, the price of food eaten at home has soared 13 percent, according to the Bureau of Labor Statistics, with some items spiking even higher. Cereals and bakery goods are up 16.2 percent from a year ago, closely followed by dairy, which has risen 15.9 percent.

The cost of eating at restaurants has risen 8.5 percent over the same period.

Even food executives have been surprised by how well the higher food prices have been accepted.

On a call with investors, James Quincey, Coca-Cola’s chief executive, said customers continued to buy the company’s products despite economic challenges.

“In the face of these pressures, consumers stayed resilient, and we continue to invest behind our loved brands to drive value in the marketplace and growth in our business,” Mr. Quincey said.

Article source: https://www.nytimes.com/2022/11/01/business/food-prices-profits.html