The price shoppers pay for items like meat are expected to continue the rapid rise. An updated Consumer Price Index (CPI) released from USDA Economic Research Service (ERS) shows wholesale beef prices climbed 14.2% from July to August of 2021, and price projections point to a possible 20% increase in wholesale beef prices this year.
The updated ERS forecast shows prices for meats, poultry and fish now sits at 4.5% to 5.5%, which is up from the 4% to 5% posted last month. He says the main drivers are higher beef and pork prices.
GROUND BEEF: 81/19 Ground Beef traded down last week and is down after three days of trading this week. 73/27 Ground Beef was down last week and continues to be down after three days of trading this week.
STRIPS: Up in price last week, but both grades are down this week after three days of trading.
Beef and veal prices have gone up 6.5% so far this year versus the same period in 2020, with prices in September up 17.6% from year-ago. Pork prices are up 6.3% so far in 2021 versus the same period in 2020. In September, prices were up 12.7% from year ago. One agricultural economist says bacon prices are one of the biggest sticker shock items at the grocery store right now.
We've certainly seen very strong increases in retail meat prices year over year. One big category is bacon. If you look back at the start of the pandemic compared to now, bacon prices are between 30% and 40% higher today than they were then.
Bacon prices have shown sticker shock as of late as bacon is being buoyed by a few factors, including dynamic demand, both domestically and abroad.