Grocery store prices continue to soar with no end in sight

The supply and demand imbalance means companies can pass on the higher prices to shoppers...
The supply and demand imbalance means companies can pass on the higher prices to shoppers without their sales taking a big hit.(Pixabay)
Published: Oct. 25, 2022 at 9:41 AM CDT
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(CNN) - It seems like everything is getting more expensive, and according to new government data, prices at the grocery store are no exception.

The Food at Home Index is an indicator of grocery prices. It increased by .7% last month and 13% over the last year.

Contributing factors for the food price hikes include producers paying more for labor and materials, extreme weather conditions and diseases such as the deadly Avian flu.

Demand is still high, though, because people need to eat.

Many people are working from home now and eating more of their meals there than they did before the pandemic.

The supply and demand imbalance means companies can pass on the higher prices to shoppers without their sales taking a big hit.

Many shoppers are making adjustments by doing things like buying fewer products, buying less expensive private-label brands or shopping at discount grocery chains.