Assessment: Inflation doesn’t stop at the supermarket but continues at the fuel station, where gasoline prices have jumped to seven-year highs …
Soaring supermarket prices might not seem like a big issue for the top 10% of Americans who’ve enjoyed a period of asset price inflation thanks to the Federal Reserve, but for the working poor who don’t own assets and are stuck in a renting society, every single price increase for food is eating away at their real wages.
Add milk to the long list of foods that are getting more expensive at supermarkets across the country. Bloomberg reports retail prices for a gallon of milk are up 26% at $3.59 since bottoming at $2.84 in July 2018.
“You have sown much, and bring in little; You eat, but do not have enough; You drink, but you are not filled with drink; You clothe yourselves, but no one is warm; And he who earns wages, Earns wages to put into a bag with holes.” Haggai 1:6
There are several factors at work pushing milk prices higher. First, the number of dairy cows has collapsed to the lowest in a decade, which crimps output. Foreign dairy producers, such as major ones in the European Union, New Zealand, and Australia, are also experiencing declining outputs. On top of this all, the cost to feed dairy cows and operate a dairy farm is becoming more expensive thanks to soaring commodity prices, suggesting prices will continue to rise well into 2022.
For the average household, dozens of gallons of milk are purchased each year, and for the working poor, every incremental price increase adds up. But it’s not just milk and dairy products that are on the rise, almost every product at the grocery store has jumped in the past year. For example, meat prices — boneless chuck roast have risen 28% in the last year.
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