The Price Of NYC's Breakfast Staples Are Soaring

It's common knowledge that living in New York City can be extremely expensive. While the city has so much to offer in terms of culture and entertainment, it can also take a bite out of your pocketbook. When it comes to the cost of living, Payscale puts NYC a whopping 146% above the national average. For instance, transportation costs 21% more in the city than in other areas of the country, while housing costs are an astounding 407% higher. Renters can expect to pay $6,170 per month on average, and the median cost of buying a home in the city is $2,019,853.

As for groceries, New Yorkers pay 39% more on average for things such as milk, bread, and eggs. These staples are an essential part of a hearty and wholesome breakfast, along with other early-morning offerings, such as bacon, butter, and coffee. With prices already high in the city, the notion that they may rise even higher can be downright troubling. Unfortunately, that's the reality for many NYC residents, as well as other people throughout the United States. 

Yahoo Finance detailed the rising costs of breakfast foods in 2021, which included an 80% increase in the cost of oats and coffee prices that were 60% higher. Prices continued to climb into 2022, despite positive developments when it comes to inflation.

As Insider explains, inflation occurs when prices within an economy rise, thereby decreasing consumer buying power. Inflation rates are determined by the Consumer Price Index, which is a calculation of how average prices change during a certain period of time. Inflation typically occurs for a few reasons. Decreased supply can push up prices, as can increased demand. Inflation can also result from issues with production, such as elevated costs for raw materials.

According to CNBC, inflation is down from 7.7% in October to the current rate of 5.2%. Additionally, rates are projected to decrease even further over the next three years to reach just 3%. While this is great news for the economy, food prices are expected to remain higher than normal over the next year by 8.3%. 

CNN cites a few possible causes for increasing food prices, including adverse weather conditions, rising fuel costs, issues with labor, bird flu outbreaks, and the war in Ukraine. These price hikes are hitting the breakfast table hard, particularly in New York City.

Fox 5 listed a few of the specific foods that are causing consternation among shoppers on the hunt for breakfast items. Overall, the cost of breakfast food is 24% higher, with eggs leading the pack in terms of price increases. Consumers can expect to pay 49% more for a carton of eggs this year as compared to last, while a pound of coffee costs $1.54 more than it did a year ago. As for butter, consumers can look forward to a price hike of 34%.

There's a reason food prices aren't affected when inflation rates decrease, too. As Marketplace.org explains, food and energy costs are not included in core inflation calculations because these costs tend to fluctuate quite a bit. Fluctuations result from outside factors, including environmental effects that can diminish the quality of crops or cause an unfavorable growing environment. They can also occur due to political unrest or strife, which may affect commerce in different countries. 

There's no way to avoid many external factors that impact food prices, and the effects are making it harder for New Yorkers to enjoy the most important meal of the day.