You're not crazy: Grocery prices are up in most categories
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Most food categories at grocery stores are now more expensive than they were a year ago, and the Midwest is no different.
Why it matters: You're not crazy — you are almost certainly paying more at the checkout counter than you were just a few years ago.
Zoom in: A dozen large, grade A eggs in Midwest stores averaged $3.66 in August, more expensive than any previous August dating back to 2000, according to data from the U.S. Bureau of Labor Statistics.
💬 Travis' thought bubble: I used to get a 3-pound bag of Bartlett pears at Aldi for around $3. Now, it's listed as more than $5.
- Hack: To reduce meat costs, I buy the split chicken breasts on the bone (usually saving $3-$4) and butcher them myself.
Driving the news: The food-at-home component of the Consumer Price Index rose 0.6% in August from July, the biggest month-over-month increase since August 2022, the Bureau of Labor Statistics said on Thursday.
By the numbers: Broad price increases last month hit key items that have been subject to Trump's tariffs, including groceries.
- Coffee is up 20.9% year-over-year, with a 3.1% monthly increase, per CPI.
- Uncooked beef steaks are up 16.6% year-over-year with a 3.3% monthly bump.
- While fruits and vegetables overall were up 2.3% year over year, apples rose 9.6% and bananas 6.6%.
What they're saying: "Grocery retailers, already operating on slim margins, have little room to cut prices on their own," Bankrate analyst Stephen Kates tells Axios.
Reality check: It's not just tariffs pushing up grocery costs.
- "Bad weather, shortages of farm workers and tariffs are potential culprits behind high grocery prices," wrote Bill Adams, chief economist at Comerica Bank. "But grocery prices can be volatile, and it will take time to know how persistent August's spike will be."
- The White House said last week that it would consider lowering tariffs on hundreds of products across sectors, including food, if specific deals can be struck with trading partners.
What we're watching: The prospect of lower tariffs on some grocery staples in particular could ease pressure on consumers.