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 substitute a pricier favorite for a bargain. But that's tricky when food costs soar 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.

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.

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.

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

DAIRY PRODUCTS >> Up 21% because keeping cows got very expensive as production and transportation costs ballooned.