Meat Inflation Soars as Pork Shortage and U.S. Grilling Collide
Michael Hirtzer and Dominic Carey, Bloomberg News
Jul 13, 2021
(Bloomberg) -- An increase in backyard barbecuing collided with a shortage of hogs as U.S. consumer prices for pork jumped in June by the most in 25 years.
Pork prices climbed 3.8% from a month earlier while beef gained 4%, according to a U.S. Bureau of Labor Statistics report on Tuesday. The elevated meat prices contributed to the biggest overall surge in U.S. consumer prices since 2008.
Food inflation has been on the rise since the coronavirus upended supply chains, with sick workers shutting down meat plants while consumers pivoted away from restaurants to prepare more food at home. The American hog herd hasnít recovered from culling during the onset of the pandemic. Meanwhile, droughts globally have sent animal-feed prices soaring, and labor shortages at slaughterhouses have also pushed up prices for pork, beef and chicken.
Tighter meat supplies meant retailers were forced to pay higher prices in the wholesale market, and they then passed on those costs to consumers. But with record-high temperatures...
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