Business: Meat, poultry and fish lead spike in grocery prices.
Overall Bay Area inflation tame, but some items are skyrocketing
SAN JOSE >> The cost of food has jumped in the Bay Area, propelled by meat, poultry, and fish prices that have skyrocketed, joining soaring electricity costs, a report released Friday shows, a fresh sign of how the coronavirus has jolted the region’s economy.
The overall cost of living in the Bay Area, as measured by the inflation rate, remains tame, with the consumer price index rising 1.6% over the one-year period that ended in August, the Bureau of Labor Statistics reported Friday.
Bay Area consumers, however, face dramatic differences in their costs.
It all depends on an individual’s activities during a time of widespread restrictions and fastmoving changes regarding where and how people can buy an array of items, products, and services, as well as what they are eating at home and how much electricity they are using.
With more people preparing meals at home amid months-long restrictions on dining at restaurants, the cost of food at home has increased at a far greater pace than the overall inflation rate, rising 7.2% during the one-year period that ended in August, or more than four times the overall inflation rate in the Bay Area.
In contrast, the cost of food away from home is rising at 3.6%, which still outpaces the general inflation rate but is only half the rate of increase for food at home.
Meat, fish, and poultry prices have soared a headspinning 17.4% over the 12 months ending in August in the Bay Area — which means these prices are at a super-heated pace that’s 11 times greater than the region’s cost of living during the same one-year period.
Staying at home rather than being at the office means gasoline is cheaper — but these dramatic shifts in behavior also have fueled greater pain for the pocketbook when it comes to the utility
bills.
To be sure, with people driving much less due to widespread business shutdowns ordered by state and local government officials to combat the coronavirus, gasoline prices have plummeted by 10.5% in one year.
With less driving, it’s possible that people have — for now — slaked their thirst for new cars.
Prices for new vehicles have fallen 0.3 percent during the year that ended in August.
But electricity prices have jumped 8.2% over that time period.
Electricity costs are rising five fives as fast as over
all inflation.
Fruit and vegetable prices rose by 5.1% over the one-year period ending in August, the government survey determined.
Dairy and related products have increased in cost by 4.3%.
Some indications have emerged, however, that suggest some of the worst prices increase might have begun to abate — and that some of the major price breaks are starting to look less favorable for Bay Area consumers.
Although meat, poultry, and fish prices, on an annualized basis, were up 17.4% in August, that was a marked improvement
from the 19.4% increase that was reported for the one-year period ending in June for this category.
Meat, poultry, and fish prices in August were down 4.7 percent from June.
The overall cost of food at home in August was down 2.2% from these prices in June.
However, over the last two months, it’s become a bit more costly to drive that car.
The average price for unleaded gasoline in August was up 5.3% from June, the federal agency reported.