Retail meat prices have been on the rise in recent months, but took a jump in September. Overall, the U.S. inflation rate released this week showed little change. In fact, retirees’ Social Security checks for the year ahead will not see an increase due to the very fact that inflation has remained under control.
Of course, meat has been running at bargain prices for more than a year. Now, those prices have increased 5.2 percent as reported in the government’s producer price index. That rise has pushed overall food costs up by 1.2 percent . For example, consumers’ cost for a “young chicken” in September scored the biggest one-month increase since 2006, the report revealed.
On average, pork prices increased 4.7 percent from August, beef and veal prices were 7.6 percent higher, and chicken prices rose 5 percent.
The producer price index for September was 0.4 percent higher than August, but the core index was increased just 0.1 percent when the food and energy categories were excluded. In the end, sluggish U.S. economy is keeping inflation in check.
With the recent jump in corn prices, meat and poultry prices have more upside potential ahead. The cost of feedstuffs will temper farmers’ ideas of increasing livestock and poultry herds.
For the consumer, overall food costs rose 0.3 percent in September, which is the greatest since October 2008, according to another government report. The index for meats, poultry, fish and eggs rose the most, increasing 0.9 percent after posting a decline in August.
The government reports the overall consumer price index for September rose 0.1 percent in September. With food and energy removed from the equation, the index remained unchanged.
Source: U.S. Consumer Price Index Report, Meatingplace.com