- The price of snack foods sold at vending machines in the United States rose 2.3% between May and June.
- This is the largest month-on-month cost increase on record, according to Axes.
- Food shortages, labor shortages and supply chain issues are driving up prices.
Food prices in vending machines soared in June.
According to the consumer price index of the Bureau of Labor Statistics, snack foods sold in these machines in the United States rose 2.3% last month, the biggest cost jump on record, Axios reported. The cost of restaurant meals increased 0.7% overall.
Food shortages, wage hikes and the ongoing labor crisis are pushing food manufacturers and restaurants to raise prices. Brands that are usually stored in vending machines – Pepsi, Coca Cola, Nestle for example – face the same challenges and said they are raising prices on the consumer side to offset rising costs.
“We are now seeing widespread inflation for our various commodities, packaging materials and transportation costs,” said Nestlé CEO Mark Schneider, said on a call with analysts in April. “Not all of these may be covered, and our coverage for a number of commodities will run out over time. We increase prices where appropriate.”
Food brands and retailers are affected on all sides. The current shipping crisis – which has caused a disruption in the freight supply chain – is causing delays and increased shipping costs, pushing up food prices.
Read more: Why the world is in a maritime crisis
Other companies are impacted by a tight labor market, which leads to labor shortages and therefore delays in production and distribution. Some have had to increase wages to attract new workers and pass these expenses on to the customer.
Some experts expect these price increases to continue until 2022.
The fear of inflation in the United States is “far from over,” as shortages and supply chain problems continue to put pressure on prices, said Andrew Hunter, senior US economist at Capital Economics, in a note to clients cited by The Guardian.
Others are more optimistic:
Price increases could be shortlived as the economy reopens and supply chain problems ease, Ian Shepherdson, chief economist at Pantheon Macroeconomics, told Joseph Zeballos-Roig and Madison this week. Hoff from Insider.