What Grocers Need To Know About Produce Inflation in 2022
In the past year, inflation has taken a toll on everyone, from regular produce consumers to the grocers who sell the products. Thankfully, there’s a possability that we may see a decrease in inflation soon. This decrease would help everyone: consumers usually spend more when prices are lower, meaning grocers make more.
Make sure you’re prepared for a surge in shopping by keeping your produce sections fully stocked! Texas Rio Red grapefruit suppliers are ready to meet your produce inventory needs. Keep reading to learn more about how inflation has affected everyone and why it may end soon.
What Is Inflation?
Simply put, inflation is an increase in prices over a certain period and a decrease in money’s purchasing power. From 1947 to 2021, fresh fruit saw an average of almost 4% inflation yearly. But between 2021 and 2022, the cost of fresh fruit rose by an average of just under 8%. That means fruit prices are rising twice as fast as their historical average.
What’s Causing Inflation?
This increase in inflation from 2021 to 2022 was most likely caused by several difficult, deadly, and costly situation that our world has faced in recent years:
- Covid-19 Pandemic – During the pandemic shutdown, supply chain issues and labor shortages made it difficult for many items, including fruit, to be produced, shipped, and stocked.
- Resurgence of Consumer Demand – As pandemic restrictions lifted, product demand skyrocketed. People could finally get out again to enjoy the shopping, dining, and traveling they had missed, flooding underused supply chains.
- Russian Invasion of Ukraine – Many nations worldwide have placed sanctions on Russia following its invasion of Ukraine. These sanctions put pressure on the supply chains for energy and food, around the world.
- Job and Wage Growth – Some businesses have increased wages over the last year. When companies raise wages, they often use that to justify raising prices for their products.
- High Gas Prices — Historically high gas prices have caused the energy it takes to cary out production, transportation, and power stores to increase in price significantly. As a result, the cost of a company’s products also goes up to meet its higher expenses.
Is Inflation Ending Any Time Soon?
There may be a reason to believe this dramatic inflation is slowing down. In the last couple of months, many high-ticket items have decreased in price as stores face a glut of inventory. Used vehicles cost 1.3% lower, airfare prices seem to have fallen, and stores have put on large sales of overstock. Even gas prices have dropped almost 40 cents per gallon on average in the last month, though the country’s average is still near its forty-year high.
Find Your Ruby Red Grapefruit Supply at Winter Sweetz!
With the inflation rate beginning to slow down, now is the time to think about what you’ll be stocking in your produce sections in the upcoming year.
Texas red grapefruit is a great option that’s sure to satisfy your customers—and your bottom line! As sweet red grapefruit growers, Winter Sweetz can fill your shelves with the sweetest and juiciest Texas grapefruit around!