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What Caused the Food Price Increase?

Food prices have increased more than normal in 2021 due to various factors which include:

  • Import Costs
  • Container Prices
  • Ingredient Prices
  • Logistical Bottlenecks

Other reasons for food price increases are labor shortages and higher food demand. Since the Covid pandemic started in 2020, some businesses opted to close or suspend their business. The shelter in place lockdowns limited how businesses are allowed to operate.

Now that businesses are starting to completely open up, food manufacturers do not have enough workers to meet the demands of the F&B and gastronomy industries. There are still not enough workers to help process and transport items needed by food distributors. So with the food demand increasing, prices are rising significantly more than normal.

A Food Marketing Institute executive pointed out that “You’re competing against not only the food supply chain, but also with other consumer goods supply chains,”

According to the US Chamber of Commerce and CNBC, the consumer price index rose 6.2% across the US, the highest inflation rate since 1990.

Even many restaurant clients of Kahl Consultants have been forced to increase their prices. For more tech tips, local updates and events go ahead and visit KC News!