The prices of fresh fruit in the USA are rising rapidly, and the war taking place thousands of kilometers away is one of the main reasons for this state of affairs.
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Wholesale prices for berries, limes, tomatoes and other agricultural products have skyrocketed in the U.S. recently
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Business Insider
Food prices are rising
Wholesale prices for berries, limes, tomatoes and other agricultural products have skyrocketed over the past month, according to data from the US Department of Agriculture. Rising oil prices due to the war in Iran are a major factor.
Americans face high fuel prices
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Business Insider
When fuel costs rise, fresh food prices rise first.
This is because fresh produce requires long distance transportation as well as intensive refrigeration, both of which require large amounts of diesel fuel.
And diesel is one of the fuels whose price has increased over the past month due to the disruption of oil supplies in the Strait of Hormuz. Some price increases are very high.
Blueberry prices increased by 40%. over the last month, tomatoes by 50% and limes by as much as 60%. This increase is not solely due to fuel costs.
Some products are imported from Central and South America and are subject to tariffs introduced by President Donald Trump.
The question is to what extent these price increases from suppliers will translate into prices on grocery store shelves. Most retailers operate on very low profit margins.
The people of the United States are paying for Donald Trump's decisions
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Will high prices translate into lower consumption of vegetables and fruit?
This means they are likely to pass on higher costs to consumers. However, if they raise prices too quickly or too much, consumers may simply stop buying fruit and vegetables altogether.
And this is bad news, because vegetables and fruits spoil the fastest in the grocery store. All this puts grocery stores in a difficult situation. They must strike a balance between rising costs and the risk of waste.
To learn more about how world events are affecting your grocery bill, visit Business Insider.
Author: Aleksander Bitter, Business Insider journalist
