Consumer prices rose 8.3% from a year earlier, but the jump in “core” prices, which exclude volatile food and energy costs, was especially worrisome.
Nationally, the average cost of a gallon of gas has dropped to $3.71, down from just above $5 in mid-June. But grocery prices have continued to rise rapidly, jumping 0.7% from July to August. In the past year, they have soared 13.5% — the biggest 12-month increase since 1979.
Though much of the food is donated, Crouch said her organization buys some of it and has faced sharp increases in meat and dairy prices in the past few months. Elaine Buckberg, chief economist at General Motors, said Friday that the pandemic disruptions to overseas production of semiconductors, which have slowed auto output, have significantly dissipated and that overall supply chain disruptions have improved about 80% from the worst days of the pandemic.
The company’s profit margin has been cut by half, Thomas said, but she and her partner think it’s important to keep their products affordable. She says larger companies have made inflation worse by raising prices unnecessarily.
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