Despite a dramatic drop in gasoline prices, food costs are soaring.
By Alexis Christoforous, September 14, 2022, 1:58 PM
Americans may be getting some relief at the gas pump, but they are not finding that relief at the grocery store.
Gasoline prices nationwide are down 10.6% from their record high of $5 a gallon in June. According to the American Automobile Association, the national average is now $3.70 for a gallon of regular, but food prices continue to soar.
The August Consumer Price Index found inflation rose 8.3%, down slightly from July’s reading of 8.5%, but still near a 40-year high. Those falling gas prices were more than offset by higher prices for rent, food, health care and electricity.
The Federal Reserve’s series of interest rate hikes designed to beat back high inflation has had little impact on food prices. Economists say that is because a number of factors influence the cost of food, including the geopolitical landscape and weather.