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Why Grocery Store Prices Are Rising - And May Stay That Way

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VILLANOVA, Pa. (WLVT) - If it seems like you’ve been paying more for your groceries lately, you’re right. In April, the U.S. Bureau of Labor Statistics recorded the sharpest increase in grocery store prices in nearly 50 years.

Kathleen Iacocca teaches supply chain management at Villanova University. She attributes rising costs to issues within the supply chain.

''Our distribution chain has been disrupted. We have farmers throwing away produce. We have meat packing facilities reducing the amount of meat they can produce. It’s not for a lack of demand,'' Iacocca told PBS39. ''It’s a lack of getting it transported to the grocery store.''

She says another reason for price increases is a major disruption in how goods are packaged and transported. Many employees are working limited hours or getting sick from Covid-19.

''We need people on the field picking produce, we need people driving trucks, we need people producing and packaging meat products,'' said Iacocca. ''When those people get sick, or when we limit the number of people allowed to work at the same time, we lower our production capabilities.''

MEAT AND FLOUR

According to agricultural lending group CoBank, pork and beef prices are expected to go up by 20 percent in July.

''When we start talking about meat in particular, 51 percent of that consumption is by restaurants. Again, we have a supply and demand disruption taking place,'' said Iacocca.

A nearly three percent increase in prices for cereal and bakery products like flour were recorded in April.

''I don’t think these prices will stay as high as meat, because this is a result of buying patterns,'' said Iacocca, also noting ongoing ''snowstorm like buying patterns'' among consumers.

EGGS

At some grocery stores, the cost of eggs has risen by nearly $3 per dozen.

Kimberly Butler, farm manager at Maple Acres Farmers Market in Plymouth Meeting, says the market did not raise egg prices, even though demand went up.

''We have about 100 chickens laying our own eggs. I normally would sell a case a week, plus our eggs. Now, I’m selling eight cases twice a week, plus our eggs,'' Butler told PBS39. ''My purveyors have sent me text messages saying, eggs are going through the roof.''

If you’re having trouble finding eggs to purchase at your preferred price, Butler says a few of her customers have decided to go the do-it-yourself route.

''I’ve never sold as many chickens as we have in the last month or so,'' said Butler, ''it’s been crazy.''

WHERE TO BUY CHEAPER EGGS

Consumers may be able to find cheaper eggs or eggs being sold at-cost at local farms and markets like Maple Acres Farmers Market in Plymouth Meeting, Bauder Farms in Skippack and The Nesting Box in Easton.

PBS39 News ReportsRISING GROCERY PRICES
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Checking in on grocery store prices as the cost of items increase.