Rising fuel costs prompt spike in Hawaii grocery prices
HONOLULU (HawaiiNewsNow) – Hawaii grocery bills, already higher than most places on the mainland, are rising further as energy costs increase, according to Hawaii Foodservice Alliance CEO Chad Buck.
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Local economists predict inflation in the state will be nearly 5% this year, about 30% higher than the national rate.
Fuel costs ripple through supply chain
Buck, whose company is the state’s biggest food distributor, said the cost of shipping and trucking has risen due to the Iran war oil price spike.
“As fuel goes in Hawaii, so goes everything else,” Buck said.
“I can tell you, I wake up every morning and look at fuel prices in the first 30 minutes,” Buck said.
About 90% of items in a Hawaiʻi shopping cart are shipped in. Containers being unloaded at the warehouse cost about $760 more to bring in than in January, an increase of about 7.5%. Multiplied by 2,000 containers a week, that amounts to $80 million a year out of consumers’ pockets.
“It increased fuel costs that go directly into your grocery receipt or your restaurant,” Buck said.
Buck said diesel that fuels delivery trucks is up 77%, adding to his company’s costs.
“Just to get the same groceries and the same routes, to the same stores, but $100,000 more a month to do it,” Buck said.
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Air cargo costs more than double
Pallets of produce arriving in the morning reach stores by the afternoon but must travel by air, which Buck said has had the biggest impact on food prices. Air cargo costs are up 217%, more than doubling.
“Some of the healthiest foods on the shelf, berries and salad and fresh vegetables. Those are up between a dollar and $1.46 for 16 ounces per pound,” Buck said.
Consumers change shopping habits
Salt Lake resident Ruby Bugarin said she and her sister now buy only what they need for a few days at a time to avoid waste.
“You don’t want it to waste, right? So a lot of times my sister and I will just buy what we need for the day or couple days from now,” Bugarin said.
Bugarin said she has noticed produce prices climbing quickly.
“Very fast, back in the day it was $2.99 for a banana or a fruit, but now it’s $4.99 or $5.99, which is ridiculous, you know,” Bugarin said.
Buck said the food industry is trying to soften the impact on consumers.
“Everybody in Hawaii is trying to work together to figure out how do we get through this? What gets passed on? What doesn’t get passed on? Is there relief in sight?” Buck said.
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