Search Results
Journal Article
Labor Constraints and Strong Demand Are Driving Robust Food Services Inflation
Although headline inflation has slowed in recent months, inflation for core services has remained elevated since the first half of 2021. Inflation for food services in particular has been significantly higher than inflation for goods and other services. We argue that food services inflation has been elevated by the sector’s fast rebound in expenditures and its high dependency on labor amid labor shortages and elevated labor costs.
Speech
Healthy Workforce, Healthy Economy
Remarks at Combating Food Insecurity: What’s Working – and What’s Scalable? (delivered via videoconference.
Journal Article
Key Agricultural Trade Partners Are Important for U.S. Farm Sector Revenues and Food Prices
The U.S. agricultural sector is especially vulnerable to fluctuations in trade with Mexico, Canada, and China. Several major commodities and staple consumer food products rely heavily on exports to and imports from these countries. Major changes to these key trade relationships could lead to reduced farm sector revenues and higher food prices for consumers.
Journal Article
Tight Labor Markets Have Been a Key Contributor to High Food Inflation
Food inflation remains higher than measures of overall inflation, and labor markets have been tight. We find that processed food products have driven recent increases in grocery prices, and we argue that labor market tightness affects the prices of these labor-intensive products in particular through increases in production and distribution costs. Food inflation at grocery stores could remain elevated if price pressures on the supply side persist and demand for food at home remains strong.