Inflation in the United States is expected grow in 2021, driven by enormous economic stimulus, pent-up demand due to coronavirus, and rising petroleum prices. As a result of this inflation, prices for food and food inputs are expected to rise as well.
According the Bureau of Labor Statistics the price of food rose 3.6% in February 2021. It was the highest increase of all major categories on the Consumer Price Index (CPI). Pricing and availability of ingredients will continue to create challenges for food and beverage manufacturers throughout an ongoing pandemic. Much of the price volatility in the food & beverage industry can be attributed to 3 main factors.
1. Availability & Demand for Ingredients
2. Imports & Exports
3. Fuel & Transportation.
Compounding these industry wide factors with each ingredient’s unique market factors will continue to create sourcing issues for many manufacturers.
Learn what is causing the disruptions and how American International Foods, Inc. can help ensure reliable supply chain solutions.
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