Food is a necessity that all people need to survive. Moreover, according to the United Nations Office of the High Commissioner for Human Rights, there is also a legal right to food. Despite the natural and legal rights to food, today’s consumers have been faced with staggering food price inflation. American food prices are up approximately 30 percent when compared with early 2020 reports, representing at least a forty-year high in both the food index generally and the food at home index specifically. Consumers, in turn, are outraged.
Popular narratives about food prices share a common flaw—the absence of consumer welfare from the dialogue. Whether the food price index has increased due to consolidation or to the heavy hand of government in the market, the reality is that consumers are paying more for their groceries and meat, poultry, and egg prices are the single largest contributor to the rising cost of food people consume at home. The most fungible part of a family’s budget is food. The cause of the food price increases, whether due to consolidation or government overreach, is secondary to the reality that all consumers are paying more for their groceries, especially meat, poultry, and eggs, and that price increases disproportionately impact the most vulnerable sectors of society. The emphasis going forward should thus be on how best to prioritize consumer welfare by decreasing the impact food prices have on American consumers.