Due to recent drought in large areas of the southwest, many experts speculate that American consumers will see a rise in the price of food in the upcoming months. The drought currently being experienced is quite massive in scale, it stretches across the southwest and into California (which is one of the biggest producers in the US). According to a recent article on CNBC:
The U.S. Department of Agriculture’s Economic Research Service said that California’s drought could increase food price inflation above the historical average in the weeks ahead.
“It doesn’t take long for the effects of what’s happening at the farm level to transfer to the checkout counter,” said Annmarie Kuhns, a researcher at the USDA, told CNBC. “It’s usually just about a month for the impact to take hold.”
This will undoubtedly have an impact on the average consumer. As the consumer spends much of their income on food, the fact that its price is rising will play a role in personal finance decisions across the board. Further, this drought, though the largest, is not the only factor leading to higher food prices. There is also a citrus disease that is afflicting citrus crops, particularly in Florida. Thus, consumers will need to expect to pay slightly higher prices for the same products in the future. This is due to the fact, that as stated, the current supply shock in the production of certain produce will affect the consumer rather obviously in the near future.
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