Tight Labor Markets Have Been a Key Contributor to High Food Inflation

Cortney Cowley, Ty Kreitman and Francisco Scott

Economic Bulletin, 2023, 4

Abstract: Food inflation remains higher than measures of overall inflation, and labor markets have been tight. We find that processed food products have driven recent increases in grocery prices, and we argue that labor market tightness affects the prices of these labor-intensive products in particular through increases in production and distribution costs. Food inflation at grocery stores could remain elevated if price pressures on the supply side persist and demand for food at home remains strong.

Keywords: food prices; labor markets; inflation (search for similar items in EconPapers)
JEL-codes: E2 E31 L66 (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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