Wheat-based food prices on the rise

COLFAX — The USDA Wheat Outlook report released July 14 shows consumer prices for cereal products rose during January to June 2022 period about 11% from the same period in 2021 as measured through the Consumer Price Index, marking the largest year-over-year increase in a 6-month period since 1981.

Rises in consumer prices for cereal products follow a greater increase in wheat prices. The market price for wheat in Kansas City, Mo., which closely reflects the prices mills pay for wheat, were up 63%, the USDA reported.

“This heightened volatility follows a historically typical pattern,” the report said. Commodity market price changes are typically more extreme than changes in consumer prices, which track finished goods. Commodity prices are usually a small portion of the total value of cereal products.

The USDA reported the high price of other ingredients, as well as elevated labor and fuel costs are also driving up prices.