Metro Atlanta consumers grapple with higher prices on food, other goods

The price of coffee has jumped more than 20% from a year ago. Ground beef is up nearly 13%, and apples almost 10%, according to the U.S. Bureau of Labor Statistics.

“Typically, reducing rates has helped stimulate growth,” said Joe Feldman, senior managing director and assistant director of research at investment firm Telsey Advisory Group.

“Growth can sometimes stimulate inflation,” he said. “This comes at a time when the tariffs are going to start to really impact prices in the second half of this year, and really, the first half of next year.”

The city of Atlanta launched Azalea Fresh Market in downtown Atlanta, in partnership with Savi Provisions, to boost affordable grocery options in the city's core. (Natrice Miller/AJC)

It’s not just food prices that have escalated. Prices are up on some home goods, vehicles and apparel. For example, the cost of used cars and trucks is up 6% from a year ago, and furniture and bedding almost 5%.

Feldman expects tariffs to more broadly cycle through in coming months, which could likely “take another bite out of consumer spending,” he said.

The U.S. tariff situation, though, remains uncertain because of ongoing legal challenges and evolving policies. The U.S Supreme Court in November is expected to hear a case challenging the legality of President Donald Trump’s authority to impose tariffs.

Tariffs are taxes on imported goods. Economists generally view them as inflationary and the taxes are typically paid for by the entity importing the product, though some companies have been eating some of the costs to cushion the blow to consumers.

“Trump’s tariff chaos is driving up prices for Georgia families, as expected, while making jobs harder to find as businesses are paralyzed,” U.S. Sen. Jon Ossoff said in a statement. “Stagflation is the risk and it’s hard to shake once it sets in.”

The producer price index measures wholesale inflation.

“The latest PPI report shows there is no inflation — wholesale prices fell and smashed economists’ expectations,” White House Press Secretary Karoline Leavitt said in a prepared statement. “President Trump has defeated Joe Biden’s inflation crisis while successfully implementing powerful tariffs, which haven’t hiked prices like the so-called ‘experts’ claimed.”

Simeon Wallis, chief investment officer at Atlanta-based accounting and business advisory firm Aprio Wealth Management, said that, over time, a decline in the producer price index could potentially reduce consumer prices.

But he noted, “In any given month, the numbers can be a little bit noisy.”

More food inflation in metro Atlanta

That’s because metro Atlanta typically has lower shelter and energy costs, Wallis, of Aprio, said.

But metro Atlantans might be feeling inflation more in their food costs, with the food index up 3.5% from a year ago, outpacing national numbers.

Metro Atlanta doesn’t have the same agricultural basket as other parts of the country, such as the Midwest, Wallis said. “Outside of poultry, we tend to import from other parts of the country more of our food,” he said, and those transportation costs can hike up prices.

Metro Atlanta, though, is seeing price decreases in other categories. For example, apparel is down 7.5% from a year ago, and gas is down 9.5%.

How some people are saving money

Kroger customers “are feeling pretty stressed about the economy,” Ronald Sargent, board chairman and interim CEO, said last week during the grocer’s second-quarter earnings call. Kroger has more than 160 stores in Georgia.

“They’re doing things to save money,” he said.

Sargent said low and middle-income households are looking for deals and using more coupons. They are making smaller but more frequent grocery trips, he added, and eating out less.

Higher-income households are still spending and splurging on premium products, Sargent said. But they are buying larger pack sizes of items, indicating they are also interested in value per serving, he said.

“So in both groups, we’re seeing less of the maybe discretionary spending,” he said. “We’re seeing some declines in snack categories, adult beverages. … We think that the consumer is going to remain cautious.”

Keyana Jacinthe is the owner of Bliss Cookie Jar, which makes gourmet vegan cookies. She has begun making some of her own ingredients to keep the price of her product down. (Courtesy of Keyana Jacinthe)

Atlanta area businesses are also having to adapt.

Dacula resident Keyana Jacinthe is the owner of Bliss Cookie Jar, a business that makes gourmet vegan cookies. She said the price of vegan chocolate chips has gone up as much as $1.50 per 10-ounce bag.