Meat +13%, gasoline +38% lifts "all items" CPI to +7.9% year on year

Mar. 10, 2022 11:18 AM ETTSN, GIS, CASY, MUSABy: SA News Team18 Comments

Inflation, growth of food sales, growth of market basket or consumer price index concept. Shopping basket with foods on arrow.

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  • The headline Consumer Price Index "CPI" is often quoted excluding food and energy; during February, "core" consumer prices rose by 6.4% from the same period a year ago.
  • When including food +7.9%, and energy +25.6%, the "all items" index rose by 7.9%.
  • Food "at home" prices rose 8.6%, led by meat +13.0%; prices for food "away from home" rose 6.8%.
  • Gasoline prices rose 38.0% year on year, while natural gas utility prices rose 23.8% and electricity prices rose 9.0%.
  • According to AAA, national average gasoline prices Thursday stood at $4.32 per gallon, up 24.1% from a month ago and 53.2% from a year ago, suggesting the CPI energy component will see further increases in the months ahead.
  • Higher energy prices are sure to benefit oil and gas producers, though the benefits are well understood.
  • Farmers and ranchers should benefit from higher food prices; however, record fertilizer costs are eating into margins.
  • The report highlights one trend for investors to monitor, and that is the ability for processors to pass through higher costs; whether at the pump, for retailers like Murphy USA (NYSE:MUSA) and Casey's (NASDAQ:CASY), or in the grocery aisle, for companies like Tyson (NYSE:TSN) and General Mills (NYSE:GIS).

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