Grocery Store Shoppers Feeling Brunt of High Inflation Rate

SAN FRANCISCO (CBS SF) -- Over the past year, the Consumer Price Index (CPI) has increased by 8.5%, according to a new report from the U.S. Department of Labor.

That is the fastest inflation rate since 1981, per the report.

"It's a continuing trend of what we've seen over the last few months. Prices are increasing at a higher rate than we've experienced in the last 30-40 years, and there doesn't seem to be an immediate or near-term end to that trend," said Justin Rietz, an assistant professor of economics at San Jose State University. "We're seeing a broad-based increase in prices. There are very few areas it looks like where people won't feel it in their pocketbook."

One place everyone experiences the phenomenon: the grocery store. The price for food over the past 12 months has increased by 8.8%, per the CPI.

"I can't believe how much everything has gone up, it's ridiculous," said Anita Martin, who lives in San Bruno. "It's really hard when you're trying to feed a family and you're on a budget."

Christin Mullen, who lives in San Mateo, says she's noticed her grocery bill steadily increase over the last few months.

"Everything seems to be more expensive," she said.

Here's a few examples of how the prices of certain foods have increased over the last year, per the CPI:
• Fruits and Vegetables: 8.5%
• Coffee: 11.2%
• Milk: 13.3%
• Meats, Poultry, Fish, Eggs: 13.7%
• Butter and Margarine: 14%
• Bacon & Related Products: 18.2%

"I used to eat steak all the time. I have a family of five. To buy everybody a steak, it's expensive, so we choose to eat other things, like chicken or something less expensive," said Burlingame resident Tom Condon.

While all consumers experience inflation, Rietz says it will have a more significant impact on a few groups of people.

"It affects lower-income households more. They're going to feel that hit. People who are on fixed incomes are going to feel that because their wages aren't increasing with the inflation rate," Rietz said. "The Federal Reserve is taking new actions to try and bring inflation down. They're targeting a higher interest rate. So, it looks like the Fed will increase that interest rate target more in the near future, so hopefully that will bring inflation down. They're also taking on actions to reduce the money floating around in the economy, so we expect that to have some impact. Unfortunately, we know that monetary policy operates with long and variable lags. So, when exactly those policies will kick in is hard to say. And not only that, but we also don't know how effective those policies will be. They could actually have a negative impact. If the Federal Reserve puts on the brakes too hard, it could actually throw the economy into a recession."