INDIANAPOLIS — U.S. government data shows food prices jumped last month, and experts warn relief may not be in sight. This comes as Hoosiers feel the impact of higher gas prices, too.
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The Producer Price Index inflation rate is now 3.4%, the highest it has been since last February. Economists say the sharp increase was mostly driven by food prices.
Food prices rose by 2.4% from January to February, led by a 50% surge in vegetable prices and a 10% increase in fruit prices.
The numbers come from a Department of Labor report released Wednesday showing the latest Producer Price Index, which measures inflation before it hits consumers.
"The numbers that have come out have shown that prices are continuing to increase," Kyle Anderson said.
Anderson is an economist at the Indiana University Kelley School of Business.
"It tends to be pretty volatile. It was definitely higher than anticipated," Anderson said.
The jump in food prices happened before the attack on Iran. However, Anderson said surging gas prices tied directly to the conflict in the Middle East are also hitting Hoosiers hard.
"When disruptions happen in one part of the world, it raises prices everywhere," Anderson said.
WRTV asked Anderson what this means for Hoosiers when it comes to affordability, as we are already seeing higher prices at the pump and in the grocery store.
"Rising prices aren't always that bad if wages are increasing," Anderson said. "What is really troubling to me is seeing a little bit weaker job growth. Wages aren't exactly rising."
For retirees, the crunch is already here.
"When you’re on fixed income, it stays the same, prices going up, it’s tough," retiree Ms. Annie said. "Everything is tough, Doctors’ bills is going up, everything is going up."
Other Hoosiers share that they are also feeling the impact of the rising costs.
"Every time I do a quick trip, it is $50, $60, sometimes $80 or $90 for just five or six things," Indianapolis resident Kim Burns said. "So watching the prices go up, it’s definitely hurting the bank at home, keeping you from going out and doing things."
Anderson said, unfortunately, relief might not come anytime soon.
"We had a period where inflation was mostly under control, but now we're seeing some strains in the system. Prices aren't going down. They're probably heading up," Anderson said.
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