s/dan_panteraFOOD INFLATION•Apr 22
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Diesel up 88% drives food company costs up 7.9%
Food company costs just snapped higher, and it's basically fuel doing it. March input costs ran 7.9% year over year, up from 4.2% in February, with diesel singled out as the main pressure pushing transport and production expenses up fast.
Fuel pass-through
This reads like the moment energy inflation stops sitting at the pump and starts moving through the supply chain. Diesel was up 88% year over year, and that hits everything that moves food around before it even becomes a shelf price. Fertilizer, plastics, and other inputs haven't fully landed yet, so this is still early-stage. The cost base for food manufacturers is already shifting higher.
Fuel pass-through
This reads like the moment energy inflation stops sitting at the pump and starts moving through the supply chain. Diesel was up 88% year over year, and that hits everything that moves food around before it even becomes a shelf price. Fertilizer, plastics, and other inputs haven't fully landed yet, so this is still early-stage. The cost base for food manufacturers is already shifting higher.
Timeline3
Apr 1
Food and beverage company input costs were reported up 7.9% year over year in March, versus 4.2% in February.
Apr 22
Tracy Alloway highlighted the March jump and said the increase was mainly from higher fuel costs, with fertilizer and plastics pass-through still ahead.
Apr 22
Semafor described the rise as fuel-cost inflation expanding into the real economy.
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Apr 22