Bacon keeps getting more expensive – it now costs 13% more than last year, government data shows

Bacon
The price of bacon rose 13% year-on-year in May.

  • Bacon is way more expensive than it was a year ago.
  • The price of bacon has jumped 13% year-on-year, BLS data shows, and it rose 1.8% between April and May.
  • The consumer price index was up 5%, but signals suggest an inflation slowdown could be coming.
  • See more stories on Insider’s business page.

Bacon is now 13% more expensive than a year ago, according to the latest data from the Bureau of Labor Statistics (BLS).

And it’s not just shoppers facing higher prices: The owner of Burger King and Popeyes says prices for its key ingredients, including bacon, are rising, according to an internal report viewed by Bloomberg News.

The cost of bacon rose 1.8% between April and May, according to BLS data – this was a slower increase than March to April, when bacon prices jumped 3.4%.

Supply shortages and rising costs of pig feed were making pork products more expensive, Jayson L. Lusk, head of the Department of Agricultural Economics at Perdue, told the “Today” program in April.

The cost of other household staples has risen sharply, too. Over the past year, whole milk prices have risen 7.2%, beer 2.4%, and cigarettes 7.6%, the BLS data showed.

Whiskey has also climbed 3.7% in the past year, BLS data showed. It rose 0.7% from April to May, having fallen 0.2% in the previous month.

The overall consumer price index (CPI) rose 0.6% from April to May, and has surged 5% in the past year.

The monthly CPI jump was due mostly to a 7.3% rise in the cost of used cars and trucks, which accounted for about one-third of the seasonally-adjusted all items increase. Gasoline prices surged 56.2%, and car and truck rentals grew by 110% year-on-year.

As Insider’s Juliana Kaplan and Andy Kiersz reported, multiple under-the-radar signals suggest an inflation slowdown could be coming.

The 5% year-on-year inflation was the strongest since August 2008, and beat economists’ expectations. But annual price rises are measured against an unusually low base in May 2020, when most of the country was in lockdown.

The BLS figures showed that food away from home rose by 4% year-on-year. Restaurants are putting up the prices of menu items due to rising food costs and a labor shortage.

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From toilet paper to diapers, here’s a slew of household staples that are about to get more expensive

Stockpiling toilet paper
  • Several companies including Procter & Gamble and General Mills have announced price hikes.
  • The goods affected include paper products and baby-care items.
  • The prices of Coke products and coffee are likely to increase as port delays pinch the supply chain.
  • See more stories on Insider’s business page.

Many household goods are getting more expensive as companies like Procter & Gamble and General Mills announce price hikes to combat shortages and rising shipping costs.

During its third-quarter earnings call this week, P&G said it had started raising the prices of some of its goods, including baby-care and feminine-care products and adult diapers from its brands such as Pampers, Tampax, and Always.

“The exact amount of the price increase will vary by brand and sub-brand in the range of mid-to-high single-digit percentages and will go into effect in mid-September,” P&G said in a statement.

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Some of P&G’s primary competitors, including Kimberly-Clark, have announced similar price increases. In March, Kimberly-Clark said it would increase the prices of top products like Scott toilet paper and Huggies diapers.

General Mills’ chief financial officer, Kofi Bruce, said during the company’s March earnings call that it was planning to increase its prices to offset rising commodity costs as its margins continued to fall. While the company did not specify what products would be affected, General Mills’ lineup of brands includes Cheerios, Chex, Betty Crocker, and Pillsbury products.

On Monday, Coca-Cola CEO James Quincey told CNBC that the company was planning to hike its prices for the first time in over three years. Quincey did not specify the products that would be affected.

Quincey said Coca-Cola planned to implement the price hikes “intelligently, thinking through the way we use package sizes and really optimize the price points for consumers.”

Coffee prices are also set to skyrocket. Peet’s and J.M. Smucker, the brand behind Folgers and Dunkin’ coffee, have said they’re facing rising costs. Reuters reported that in February, port delays pushed coffee prices to their highest level in over a year.

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J.M. Smucker also increased the price of its Jif peanut-butter products in August.

Many of these companies said sales had continued to rise in the last quarter, even from the previous year, when some people were stockpiling products at the beginning of the pandemic. While an increase in demand can only be a positive for companies, demand is outstripping supply and driving up the price of some goods.

Consumer interest is rising as the products are getting increasingly difficult to obtain because of a shipping-container shortage and port congestion.

March data from the US Bureau of Labor Statistics’ Consumer Price Index indicated that as vaccination rates increase, prices go up. Consumer prices increased in 2021 over last year at their highest rate in three years.

While there has been a large increase in the price of gasoline, the cost of food, rental cars, and hotels have also pushed higher.

For products from the brands of top companies like P&G, people are likely to see inflated prices at the grocery store as demand compounds on vaccine optimism and port congestion shows no sign of clearing.

Read the original article on Business Insider

From toilet paper to diapers, here’s a list of household staples that are about to get more expensive

Stockpiling toilet paper
  • Several companies including Procter & Gamble and General Mills have announced price hikes.
  • The goods most heavily impacted include paper products and baby-care items.
  • Coke products and coffee will see price increases as port delays continue to pinch the supply chain.
  • See more stories on Insider’s business page.

Many household goods are getting more expensive, as companies like Procter & Gamble and General Mills hike prices to combat shortages and rising shipping costs.

During their third-quarter earnings call, P&G said it has started raising prices on some of its paper goods, including baby-care, feminine hygiene products, and adult diapers. The price hike would encompass Pampers diapers, Charmin toilet paper, Tampax and Always feminine products, as well as Depends and Prevail adult products.

“The exact amount of the price increase will vary by brand and sub-brand in the range of mid-to-high single-digit percentages and will go into effect in mid-September,” P&G said in a statement.

AP111207090833

Some of P&G’s primary competitors, including Kimberly-Clark, have already announced similar price increases. In March, the company said it would implement a price increase for top products like Scott toilet paper and Huggies diapers.

Similarly, General Mills CFO Kofi Bruce said during the company’s March earnings call that it was planning to increase its prices to offset rising commodity costs as the company’s margins continue to fall. While the company did not specify what products would be impacted, General Mills’ line-up of brands includes Cheerios, Chex, Betty Crocker, and Pillsbury products, to name a few.

On Monday, Coca-Cola CEO James Quincey told CNBC the company is planning to hike its prices for the first time in over three years. Quincey did not say which beverages would be impacted by the price increases.

“We intend to manage those [the price hikes] intelligently, thinking through the way we use package sizes and really optimize the price points for consumers,” the CEO said.

Coke is not the only drink that will get more expensive in the coming months. Coffee prices are set to skyrocket. Peet’s and J.M. Smucker told CNBC in March that they are facing rising costs. Last month, port delays pushed coffee prices to their highest level in over a year.

AP101014139295

J.M. Smucker – the brand known for Folgers and Dunkin coffee – was one of the first companies to start hiking prices when it increased the price tag for its Jif peanut butter products in August.

Many of the companies including P&G and Coca-Cola saw sales continue to rise in the last quarter, even from the previous year when people were stockpiling products at the onset of the pandemic. While an increase in demand can only be a positive for companies, demand is outstripping supply and driving up the overall price of goods.

Consumer interest is rising at the same time the products themselves are getting increasingly difficult to obtain due to the shipping container shortage and port congestion.

March data from the US Bureau of Labor Statistics’ Consumer Price Index shows that as vaccination rates increase, prices continue to go up. Consumer prices increased in 2021 over last year at their highest rate in three years.

While gasoline prices have seen the largest increase, the cost of food, rental cars, and hotels has also pushed higher.

For top companies like P&G – that encompass everyday products and top brands like Tide, Gillette, Crest, Bounty, and Pantene – consumers will likely continue to see inflated prices at the grocery store, as demand compounds on vaccine optimism and port congestion shows no sign of clearing.

Read the original article on Business Insider