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Grocers expect food inflation to continue after report shows 13-percent annual increase

While the Consumer Price Index shows signs of overall inflation slowing down, food industry experts say it could take much longer for the same to be seen at your local grocery store.
Sherman Park Grocery store
Posted at 4:34 PM, Jan 13, 2023
and last updated 2023-01-13 19:32:35-05

MILWAUKEE — Sticker shock at the grocery store continues into the new year. New government data shows the cost of food at home has climbed 13 percent within the past 12 months here in the Midwest.

While the Consumer Price Index shows signs of overall inflation slowing down, food industry experts say it could take much longer for the same to be seen at your local grocery store.

When Tamesha Patrice goes to her neighborhood grocery store, she isn’t just buying for her family at home. She also owns a bakery business down the street.

"Egg prices are crazy, meat prices are crazy, everything is crazy," she said. “The inflation is ridiculous."

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She knows and feels the frustrations of food inflation every time she checks out.

"It is a little painful every time you go to the store and you're spending $100 on groceries and you've got two bags,” she said.

Maurice Wince opened Sherman Park Grocery last summer to bring a neighborhood grocery store to what used to be a food desert.

"The grocers like myself don't have a choice,” he said. “We have to keep our doors open, of course."

“How has inflation within that time affected your business?” TMJ4 asked.

"As a grocery store owner, I'm seeing prices go straight through the roof,” Wince replied.

The large spike of late is for egg cartons. Wince says they’ve tripled in price at his store and around the area due to the Avian Influenza outbreak.

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Federal data for the Midwest shows dairy, cereal and bakery products are up 16.7% year over year. Fruits and vegetables cost 9.8 percent more on average as well.

“Every month there's something new that you kind of sit back like, ‘holy cow! How are we going to handle this?’” said Wisconsin Grocers Association President Brandon Scholz.

Scholz says prices have increased across the board at grocery stores due to a workforce shortage and supply chain issues that have yet to be resolved.

"This is still very much of a struggle,” he said.

What will it take to get food inflation down at the grocery store?” TMJ4 asked.

"It's going to have to be all of those stages along the way,” Scholz replied. "The very beginning from those who supply the ingredients and the raw materials, and the growers and producers who have their stuff in the dirt to everything along the way. Drivers, there just aren't enough CDL drivers out there."

Scholz says it could take another year for food inflation to drop back down to a 2-3 percent annual rate, because it’s become significantly more expensive to get products to market.

"We're preparing ourselves, putting our seatbelt on if you will for the long haul,” Wince said.

TMJ4 PRICE TRACKER Starting on Feb. 25, 2022, the TMJ4 I-Team is visiting several Milwaukee-area stores to track the change in prices of a select basket of goods. You can see our shopping list by clicking here.

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