In recent news, shoppers in the meat aisle have noticed some interesting price trends. Bacon prices have been on the rise, increasing by 6.9% from May 2023 to May of this year, according to inflation data from the Bureau of Labor Statistics. Similarly, pork chops saw a 4.6% increase in prices. On the other hand, ham prices have actually decreased, dropping by 5.4% overall and 6.3% when excluding canned varieties.
Economic experts explain that prices are typically determined by supply and demand. In this case, the discrepancy in pork prices can be attributed to differences in demand. While demand for domestic pork has been growing internationally, the supply has remained the same or even decreased. This unexpected trend of decreasing prices can be puzzling.
Professor Glynn Tonsor from Kansas State University suggests that when looking at the bigger picture, pork prices have been increasing overall. From May 2019 to May 2024, ham, pork chops, and bacon prices have all seen an upward trend. However, the increase in ham prices has been particularly high due to booming US ham exports, especially to Mexico.
Another contributing factor to the high bacon prices is the strong demand for this particular product, even when it comes with a higher price tag. Retailers strategically set prices based on customer behavior, knowing that customers are willing to pay more for bacon compared to other pork products. Additionally, discounts and sales strategies also play a role in how bacon prices are perceived by consumers.
Despite the overall increase in pork prices, bacon, pork chops, and ham may still be considered a cheaper protein option compared to beef or dining out at restaurants. While grocery prices have seen a modest 1% rise in the last year, menu prices at restaurants have increased significantly, prompting some customers to cut back on dining out.
In response to the rising menu prices, restaurants like Burger King, KFC, and Starbucks have started offering menu deals to attract customers back. However, making a sandwich at home with store-bought bacon still remains a cheaper option than ordering a bacon dish at a restaurant. The fluctuating prices of bacon and other pork products reflect a complex interplay of supply, demand, and consumer behavior in the market.
