IDEAS home Printed from https://ideas.repec.org/a/fip/fedkeb/96082.html
   My bibliography  Save this article

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

Author

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.

Suggested Citation

  • Cortney Cowley & Ty Kreitman & Francisco Scott, 2023. "Tight Labor Markets Have Been a Key Contributor to High Food Inflation," Economic Bulletin, Federal Reserve Bank of Kansas City, pages 1-4, April.
    • Handle: RePEc:fip:fedkeb:96082
    as

    Download full text from publisher

    File URL: https://www.kansascityfed.org/Economic%20Bulletin/documents/9493/EconomicBulletin23ScottCowleyKreitman0419.pdf
    File Function: Full Text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    food prices; labor markets; inflation;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • L66 - Industrial Organization - - Industry Studies: Manufacturing - - - Food; Beverages; Cosmetics; Tobacco

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedkeb:96082. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zach Kastens (email available below). General contact details of provider: https://edirc.repec.org/data/frbkcus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.