Fuel prices driving up grocery costs, starting with produce, experts say

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High fuel costs hit grocery aisles

High fuel costs are hitting shoppers at the grocery store. FOX 26's Karys Belger explains. 

If your grocery bill has felt higher lately, experts say rising fuel costs could be part of the reason.

Rising fuel costs increasing grocery bills for customers

What we know:

While many consumers are noticing increases at the gas pump, economists say those higher energy prices don’t stay there — they can ripple through the supply chain and eventually show up in the cost of food.

And in many cases, that impact may start in the produce aisle.

Produce prices are shifting:

According to a recent U.S. Department of Agriculture retail report, some produce prices are already moving.

Green beans, Brussels sprouts and limes all saw increases, while berries like blueberries and raspberries showed more mixed and volatile pricing.

Experts say that kind of fluctuation is not unusual — especially for perishable foods that have to move quickly from farm to store.

Why fuel costs matter:

Energy experts say diesel plays a key role in how food gets from farms to grocery shelves.

That includes everything from harvesting crops to transporting goods by truck and rail.

When diesel prices rise, those higher costs can impact multiple parts of the supply chain — including farming, fertilizer, packaging and delivery.

And while some of those costs can show up quickly, others may take longer to reach consumers.

What shoppers could see next:

Experts say produce is often the first category where consumers notice price changes, but it may not be the last.

"I would guess that beef prices… are going to go higher because the feed costs are going to be higher… and transportation costs are going to go up."

David Gantz, a fellow at Rice University’s Baker Institute for Public Policy, says rising fuel costs can also drive up the price of livestock, since farmers may pay more for feed and transportation.

That means shoppers could eventually see higher prices in other parts of the grocery store, including meat and packaged goods.

Experts say consumers may not feel every price increase immediately.

Some costs — like transportation — can show up relatively quickly. Others, such as higher farming and production costs, may take weeks or even months to move through the supply chain.

That’s why some economists say the full impact of rising fuel prices may not be clear right away.

The bottom line:

While shoppers may already be noticing changes in produce prices, experts say the broader concern is what happens if fuel prices remain elevated.

Because if they do, those higher costs could continue to spread — impacting more items across the grocery store in the weeks and months ahead.

The Source: U.S. Department of Agriculture retail report, interview with David Gantz, Baker Institute for Public Policy, Interview with Andy Lipow, Lipow Oil Associates

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