How inflation is hurting your grocery budget: The cost of eggs has increased by 21.4%, frozen vegetables by 18.9% and flour by 17.8% – despite double-digit price drops for fuel and technology
- Annual inflation slowed to 4.9 percent, but still above the Fed’s 2 percent target
- The figure is pushed up by stubbornly expensive items such as eggs and flour
- Dailymail.com analyzes how the price rises and falls hit your wallet
In April, inflation rates fell for the 10th consecutive month, providing some respite for overstretched households.
Statistics from the U.S. Bureau of Labor Statistics show that annual inflation is now at 4.9 percent — down from the high of 9.1 percent in June 2022.
It’s the first time the US has posted an increase of less than five percent in less than two years, though it’s still well above the Fed’s target rate of two percent.
But it’s not all bad news. A breakdown of the data by Dailymail.com shows that while the price of certain groceries, like eggs, is still extremely high, tech products like smartphones and TVs are actually defying inflation.
The cost of eggs has increased by 21.4 percent over the past 12 months, while flour is 17.8 percent more expensive.
A breakdown of the data by Dailymail.com shows that while the price of certain groceries like eggs is still extremely high, tech products like smartphones and TVs are defying inflation
Both saw slight month-on-month declines of 1.5 percent and 1.3 percent respectively, after falling from their peak at the start of the year.
But their prices still remain stubbornly high compared to other products.
The spike in egg costs was caused by a supply chain disruption that has been ongoing since the pandemic and an outbreak of avian flu at the beginning of the year, which decimated production.
The price of a dozen reached $4.21 in March — a tripling from two years ago — prompting discount chain Dollar Tree to stop selling them.
Meanwhile, the price of flour is also hampered by supply chain disruptions and increased global demand for wheat.
It has had a knock-on effect on products such as biscuits – which have risen in price by 15.9 percent in the past year – and bread, which is 12.6 percent more expensive than last April.
The cost of eggs is up 21.4 percent in the last 12 months, while flour is 17.8 percent more expensive
Smartphones fell 20 percent in cost, according to the CPI – but this is just as much due to rising quality of phones while prices remain the same
And the cost of frozen vegetables is also up 18.9 percent year-on-year. This is due to a widespread shortage of frozen foods, again caused by supply chain issues that surfaced during the lockdown.
By way of comparison, costs even fell during the year for certain products.
For example, the fuel price fell by 15.2 percent compared to last year, after a further drop of 3.2 percent in the past month.
Meanwhile technical products such as smartphones, televisions, and major appliances all recorded annual declines.
For example, a smartphone is now 20 percent cheaper than in April 2022.
However, experts point out that the decline does not necessarily mean that these items will become cheaper, but that they will improve in quality.
Statistics from the U.S. Bureau of Labor Statistics show that annual inflation is now at 4.9 percent — down from its peak of 9.1 percent in June 2022
The consumer price index (CPI) usually makes exact like-for-like comparisons between the price of groceries this year compared to last year.
But with electronics, analysts should consider improvements in technology.
If a smartphone improves in quality and the price remains the same, the Bureau registers that as a price drop.
Last September, Apple launched a line of iPhones with better cameras, faster processors, and longer battery life — for the same price as the previous year’s models.
Pricing for a standard iPhone 14 starts at $799, while the luxury iPhone 14 Pro Max sells for over $1,099.
Jonathan Church, an economist at the Bureau, told CNBC last year: ‘There are many declines in the [smartphone] Table of contents.
‘And that is actually only largely due to the quality improvements.’