Aug 25, 2025 - Business
"Veggie-flation" strikes
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The U.S. economy has a vegetable problem — wholesale prices for fresh veggies soared by a record amount last month, foreshadowing a possible spike at the grocery store soon.
Why it matters: If the last few years have taught us anything, it's that the "real" statistics on inflation don't matter when consumers see the prices of tangible, everyday goods — food, gasoline, etc. — rising sharply.
- While big-box retailers have pledged to hold the line on groceries in the face of tariff pressure, not everyone can (or will) do that as trade war costs mount.
Stunning stat: A 39% increase in prices for fresh and dry vegetables from June to July was the biggest month-on-month increase for fresh vegetables since March 2022.
Zoom in: Food prices grew by 3.3% in the Greater Houston area between June 2024 and June 2025, per federal data.
- The national food inflation rate over that time was 3%.