Fed can’t fix 27% surge in California grocery prices

Sometime in 2024, the Federal Reserve will declare it won its war on inflation.

Fears of a recession will ease. The news should boost stock prices. Lower interest rates likely will be a boon to house hunters.

Yet any grocery shopper who’s paying attention at the checkout counter will ask, “What are they talking about?”

Pandemic-fueled inflation made a mess out of numerous household budgets. High food costs have been one particularly harsh result.

California’s cost of living, for example, got 19% pricier since 2019, according to my trusty spreadsheet’s average of regional consumer price indexes for Los Angeles-orange County, San Francisco, San Diego and the Inland Empire.

Rocketing prices have been particularly intense wherever you stock your fridge and pantry. Groceries in California are 27% more expensive in four years, according to my CPI averages.

Sadly, for those in monetary distress, food is a hard-to-juggle expense. It’s 13% of household spending, according to CPI math. And you can’t put it off like perhaps furniture, clothing or a car.

Now, you might try to find a bargain when a favorite item gets too expensive. But that’s tricky when food costs soar almost across the board.

Plus dining out is not a money-saving alternative. Food away from home, by California CPI averages, jumped 23% in four years.

Aisle by aisle

Prices were unkind on almost every grocery aisle. Ponder these budget-busting prices for California food niches tracked by the local CPIS — and why these expenses mushroomed. We rank them by the size of the surge …

CEREALS AND BAKERY PRODUCTS »

Up 35% in four years. The biggest culprits were grain shortages due to the Ukraine war and small crops affected by climate change.

This grouping — which includes sweets, oils and frozen meals — jumped 30%. There’s soaring demand for the convenience of frozen foods. Meanwhile, sugar prices were also on the upswing.

OTHER FOOD AT HOME » MEATS, POULTRY, FISH AND EGGS »

The price of proteins rose 28%. Packing house issues limited supplies. Illnesses cut chicken counts, and pricier grain meant pricier feed.

Up 22% as demand grew with the desire for healthier foods. Costs for energy, packaging and fertilizers jumped.

FRUITS AND VEGETABLES »