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Southern California’s high food costs are finally easing – Daily Bulletin
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Southern California’s high food costs are finally easing – Daily Bulletin

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People shop for groceries at a supermarket in Glendale, California, on January 12, 2022. (Photo by Robyn Beck / AFP) (Photo by ROBYN BECK/AFP via Getty Images)

Visits to Southern California grocery stores may not be as financially painful as they have been for the past few years.

At least, that’s what my trusty spreadsheet says after reviewing a combination of consumer price index statistics from Los Angeles-Orange County, Inland Empire and San Diego.

Local food was only 1.5% more expensive in the first half of 2024 compared to the previous year. This is a moderate increase after the costs of food bought in stores rose by 21% in the previous three years, according to CPI calculations.

Now, these broad patterns don’t mean that prices have cooled equally across all grocery aisles. Consider the breakdown of Southern California’s CPI by a few key food categories…

Fruits and vegetables: It fell 0.8% in the last year compared to an increase of 18% in the previous three years.

Dairy: It fell 0.7% last year compared with a gain of 17% in three years.

Alcoholic beverages: Last year it was flat compared to a three-year gain of 15%.

Other drinks: It rose 1.7% last year compared with a gain of 15% in three years.

Cereals and bakery products: It rose 2.4% last year compared with a gain of 32% in three years.

Meats, poultry, fish, eggs: It rose 3.5% last year compared with a gain of 17% in three years.

Almost all of the problems that the pandemic had faced in the food industry and that had driven up prices have been solved. However, the increase in food prices has forced many consumers to turn back or buy elsewhere. That loss of business has forced some retailers to reduce prices to win back customers.

It should be noted that eating out is still a headache for the wallet.

The CPI’s “eating out” index shows Southern California restaurants are 6% more expensive over the past year, after rising 17% in the previous three years. One factor could be the state’s new $20 minimum wage for large fast-food chains, which is raising menu prices at certain fast-food restaurants.

Overall, the cost of all goods and services in Southern California rose 3.5% last year after increasing 18% in the previous three years.

Jonathan Lansner is a business columnist for the Southern California News Group. He can be reached at [email protected]

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