Inflation of wheat-based product prices outpaced overall food price inflation in 2022
Consumer prices for wheat-based products were up substantially in 2022 compared to 2021, as indicated by the Consumer Price Index (CPI) data published by the U.S. Department of Labor, Bureau of Labor Statistics. Price levels of a variety of wheat products were up more than 10 percent from 2021, outpacing the rate of inflation in the broader “all food” category, which was up 9.9 percent, more than double the average increase of the previous decade. The average price level across the cereals and bakery products category was up 13 percent in 2022, well above the previous year’s increase (2.3 percent) and more than three times as large as any year in the past decade. Prices for flour and prepared flour mixes were nearly 19 percent higher in 2022, far exceeding the average from the previous decade (0.2 percent). Commodity prices for wheat were elevated in 2021 and 2022, but the increase in prices for wheat-based consumer products did not fully appear until 2022. Consumer price changes tend to lag price changes at the commodity level, partly based on the tendency of processors to purchase inputs well in advance. Rising input prices for non-wheat ingredients—such as eggs and butter, which tend to feature prominently in wheat food products—in addition to elevated labor and fuel expenses have all contributed to wheat food price inflation in 2022. This chart is drawn from the USDA, Economic Research Service Wheat Outlook, February 2023.
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