Grocery stores hit by inflation and Mother Nature

MILWAUKEE — Even though food prices aren't rising as much as they have over the past two years, many people are still frustrated by the high cost of food.

When you consider inflation and the effects of Mother Nature, grocery stores must adapt to keep their goods in stock and at a reasonable price for customers.

At the national level, data from the U.S. Department of Agriculture shows that the consumer price index for all items increased by 3% from June 2023 to June 2024. To make matters worse, certain food-growing regions around the world are experiencing extreme weather conditions.

Outpost Natural Foods is a Milwaukee-based food co-op known for sustainability and organic sourcing. The small grocery chain recently examined how Mother Nature influences its operations beyond the effects of inflation.

“The impacts we're seeing will impact these products that are typically grown in equatorial regions of the world, where we have subtropical climates and semi-mountainous regions,” said Margaret Mittelstadt, director of public relations at Outpost Natural Foods.

(Spectrum News 1/Megan Marshall)

Mittelstadt said grocers are seeing impacts on items such as coffee, cocoa used to make chocolate, sugar cane and olives.

“The olive groves are currently being hit hard by the high temperatures in the Mediterranean,” she said. “So there will be some fluctuations and changes. Even some of the low-cost olive oils will see price increases.”

Mittelstadt said the olive harvest used to make olive oil fell 26% last year and is expected to fall another 39% this year. That's one of the main reasons she often recommends shoppers try other healthy alternatives, such as avocado or coconut oil.

(Spectrum News 1/Megan Marshall)

She said she often recommends that customers look for cheaper alternatives to some of the products whose prices are constantly rising.

“It's a double whammy, so to speak,” Mittelstadt said. “Prices are already being affected. Higher prices due to inflation. That will be adjusted accordingly if yields and products are no longer in stock or there is a decline in certain products. That will also cause prices to be higher.”