US: Why have frozen fruit and vegetable prices soared by almost 12%, but the cost of fresh produce has not?

Published Aug 11, 2023

Tridge summary

The prices of frozen fruits and vegetables have seen significant increases in recent months, while the cost of fresh produce has risen only slightly. This can be attributed to climate change and extreme weather conditions affecting farming, particularly in California. Delayed planting and droughts have resulted in a shortage of ingredients for frozen goods. Additionally, rising energy prices and disruptions in the supply chain have contributed to the price hikes.

Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

What's going on with frozen fruit and vegetables? Food prices rose 0.2% on the month in July after remaining unchanged in June, and they rose 4.9% on the year, while the cost of food at home rose 3.6% on the year, government data released Thursday showed. Prices of fresh fruits and vegetables rose just 1.2% year over year. However, there were some big — even alarming — outliers: Frozen fruit and vegetable prices increased by 11.8% in July over last year, frozen vegetable prices rose 17.1% and frozen noncarbonated juice and drink prices rose 16.3%. Those price rises are at odds with overall inflation figures. U.S.A. consumer prices rose to 3.2% in July from 3% in the prior month, the Bureau of Labor Statistics said this week. It was the first increase in 13 months. Why have the prices of frozen fruits and vegetables shot up over the past 12 months, while the cost of fresh fruits and vegetables has increased so little? Climate change and extreme weather conditions — from heavy ...

Source: Marketwatch