Butter and Margarine Prices Are Now 32% Higher Than Last Year

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Unsurprising fact: 2022 prices rose. The financial burden caused by inflation is most evident at grocery stores and supermarkets around the country.

Across-the-board food prices are increased. The price of coffee was 15% higher in September 2022 than in September 2021, according to fresh CPI statistics. Chicken prices have risen 17% year-over-year.

Butter and margarine have the highest year-over-year price hikes. Butter, margarine, and similar spreads rose 32.2% between September 2021 and 2022, according to the BLS. Butter prices rose 26.6% and margarine 44%.

Butter is as crucial to cooking as a pan and burner. CNBC reports that shop prices may not reduce soon. "All the costs that go into making a stick of butter have risen," an IDFA spokesman said.

CPI's "food at home" category, which includes grocery prices, rose 13% from 2021 to 2022. Since 1979, food inflation hasn't been this high.

Why are butter and margarine so expensive? No simple answer exists. Rising labor costs, greater transportation costs, and the Ukraine crisis all pushed prices higher this year.

One pound of butter requires 21 pounds (2.5 gallons) of milk. This year, worldwide milk production fell. Australia, New Zealand, and the EU reported decreasing milk production in 2022.

Margarine contains soybean, sunflower, palm, and rapeseed oils. Ukraine is the world's top producer and exporter of sunflower oil, accounting for 31% of global production in 2021. This year, Russia's February invasion of Ukraine has hindered output.

Ukraine's vegetable oil difficulties continue. Recent droughts have reduced Canada's canola oil yield by 35% in 2021 and 2022. Brazil, the top soybean exporter, reported 14% fewer production due to La Nia.

Russia's invasion of Ukraine has far-reaching consequences. Oil and oil derivatives like gasoline and diesel have risen this year. In the latest CPI report, "energy" prices rose nearly 20% annually.

U.S. wages and incomes have likewise risen rapidly. While that's generally favorable, it implies food production and distribution labor costs must rise, resulting to higher prices.

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