{"id":520874,"date":"2026-03-13T09:22:09","date_gmt":"2026-03-13T09:22:09","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/520874\/"},"modified":"2026-03-13T09:22:09","modified_gmt":"2026-03-13T09:22:09","slug":"oil-and-fertilizer-prices-are-climbing-your-grocery-bill-may-follow","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/520874\/","title":{"rendered":"Oil and fertilizer prices are climbing. Your grocery bill may follow"},"content":{"rendered":"<p>Energy is one of the most critical inputs for the food supply chain, which means the impacts of the war could show up on your grocery receipt. \u201cThere\u2019s a very strong correlation between the movement of energy prices and the movement of food prices,\u201d Dr. Ricky Volpe, an agricultural economist and professor of agribusiness at Cal Poly, told Fortune. \u201cWe\u2019ve seen oil top $100 a gallon before and that happened to coincide with significant food price inflation.\u201d<\/p>\n<p>The war in Iran is adding another layer of volatility to an already shaky U.S. economy. Goldman Sachs has <a aria-label=\"Go to https:\/\/fortune.com\/2026\/03\/12\/will-economy-enter-recession-goldman-jobs-war-economy\/\" href=\"https:\/\/fortune.com\/2026\/03\/12\/will-economy-enter-recession-goldman-jobs-war-economy\/\" rel=\"nofollow noopener\" target=\"_blank\">increased<\/a> the chance of a recession occurring within 12 months to 25%, up five percentage points. And food affordability has been a top concern for many Americans, with food prices still on the rise despite efforts to cool inflation. Food prices <a aria-label=\"Go to https:\/\/www.cnbc.com\/2025\/12\/18\/cumulative-inflation-since-2020.html\" href=\"https:\/\/www.cnbc.com\/2025\/12\/18\/cumulative-inflation-since-2020.html\" rel=\"nofollow noopener\" target=\"_blank\">have risen<\/a> nearly 24% above pre-COVID levels and consumer sentiment <a aria-label=\"Go to https:\/\/fred.stlouisfed.org\/series\/UMCSENT\" href=\"https:\/\/fred.stlouisfed.org\/series\/UMCSENT\" rel=\"nofollow noopener\" target=\"_blank\">remains<\/a> near historic lows.<\/p>\n<p>An energy-rich supply chain<\/p>\n<p>The longer the war extends, the more drastic the impact on food prices. But if the war does end by the end of the month, as Trump has stated he\u2019s hoping to be the outcome, it\u2019s unlikely you\u2019ll see a spike in grocery prices, according to experts. \u201cIf we\u2019re talking just a few weeks, very likely you\u2019re not going to see this show up in your grocery receipts,\u201d Dr. David Ortega, an agricultural economist and professor at Michigan State University, told Fortune. \u201cBut if we\u2019re talking a month or more, a few months, then it\u2019s a different story.\u201d<\/p>\n<p>It\u2019s not exactly clear when the war will relent. Trump has offered conflicting messages as to when it could end, telling <a aria-label=\"Go to https:\/\/www.axios.com\/2026\/03\/11\/trump-iran-war-end-withdrawal\" href=\"https:\/\/www.axios.com\/2026\/03\/11\/trump-iran-war-end-withdrawal\" rel=\"nofollow noopener\" target=\"_blank\">Axios<\/a> Wednesday there is \u201cpractically nothing left\u201d to target. But Iran has <a aria-label=\"Go to https:\/\/www.cbsnews.com\/live-updates\/iran-war-us-israel-strait-of-hormuz-ship-attacks-persian-gulf-drones-missiles\/#post-update-c8d7b400\" href=\"https:\/\/www.cbsnews.com\/live-updates\/iran-war-us-israel-strait-of-hormuz-ship-attacks-persian-gulf-drones-missiles\/#post-update-c8d7b400\" rel=\"nofollow noopener\" target=\"_blank\">said<\/a> it\u2019s ready to fight a \u201clong-term war of attrition,\u201d signaling the war could extend beyond the framework Trump has suggested.<\/p>\n<p>However, prices aren\u2019t expected to increase just yet. Ortega said it could take time to see any impact in the short-term. \u201cThere\u2019s a lag between when the shock happens and when you see the full effect on your food prices,\u201d he said. \u201cIt could be the better part of a full year before we\u2019re seeing the full impact show up at the grocery store.\u201d<\/p>\n<p>Still, the food supply chain is incredibly energy-intensive, with high sums of energy required at each stage of the process. \u201cEnergy is required to grow and harvest food, and then to manufacture it, to transport it, and to store it, and then to sell it,\u201d Volpe said. \u201cIt compounds down the supply chain, and it\u2019s problematic.\u201d<\/p>\n<p>Shipping\u2014just one stage of the food supply chain requiring a massive amount of energy\u2014includes rates that are largely determined by diesel prices. <a aria-label=\"Go to https:\/\/fortune.com\/company\/fedex\/\" target=\"_blank\" href=\"https:\/\/fortune.com\/company\/fedex\/\" rel=\"nofollow noopener\">FedEx<\/a> Ground and home deliveries, for example, <a aria-label=\"Go to https:\/\/www.fedex.com\/en-us\/shipping\/fuel-surcharge.html\" href=\"https:\/\/www.fedex.com\/en-us\/shipping\/fuel-surcharge.html\" rel=\"nofollow noopener\" target=\"_blank\">add a fuel surcharge<\/a> of 24.25% when diesel prices reach $4.54 a gallon. Diesel was <a aria-label=\"Go to https:\/\/www.eia.gov\/petroleum\/gasdiesel\/\" href=\"https:\/\/www.eia.gov\/petroleum\/gasdiesel\/\" rel=\"nofollow noopener\" target=\"_blank\">above $4.80<\/a> as of Sunday.<\/p>\n<p><img data-cy=\"article-image\" alt=\"\" loading=\"lazy\" width=\"1024\" height=\"572\" decoding=\"async\" data-nimg=\"1\" class=\"transition-opacity duration-300 lazyload wp-image-4439711 not-prose w-full\" style=\"color:transparent;background-size:cover;background-position:50% 50%;background-repeat:no-repeat;background-image:url(&quot;data:image\/svg+xml;charset=utf-8,%3Csvg xmlns='http:\/\/www.w3.org\/2000\/svg' viewBox='0 0 1024 572'%3E%3Cfilter id='b' color-interpolation-filters='sRGB'%3E%3CfeGaussianBlur stdDeviation='20'\/%3E%3CfeColorMatrix values='1 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 100 -1' result='s'\/%3E%3CfeFlood x='0' y='0' width='100%25' height='100%25'\/%3E%3CfeComposite operator='out' in='s'\/%3E%3CfeComposite in2='SourceGraphic'\/%3E%3CfeGaussianBlur stdDeviation='20'\/%3E%3C\/filter%3E%3Cimage width='100%25' height='100%25' x='0' y='0' preserveAspectRatio='none' style='filter: url(%23b);' href='data:image\/png;base64,iVBORw0KGgoAAAANSUhEUgAAAAEAAAABCAQAAAC1HAwCAAAAC0lEQVR4nGNgYAAAAAMAASsJTYQAAAAASUVORK5CYII='\/%3E%3C\/svg%3E&quot;)\"   src=\"https:\/\/www.newsbeep.com\/us\/wp-content\/uploads\/2026\/03\/image_24630e.png\"\/><\/p>\n<p>A <a aria-label=\"Go to https:\/\/fredblog.stlouisfed.org\/2026\/03\/the-relationship-among-pil-prices-food-costs-and-consumer-inflation\/\" href=\"https:\/\/fredblog.stlouisfed.org\/2026\/03\/the-relationship-among-pil-prices-food-costs-and-consumer-inflation\/\" rel=\"nofollow noopener\" target=\"_blank\">blog post<\/a> Thursday from the Federal Reserve Bank of St. Louis finds high correlation between crude oil prices and the global price of food index. While the post cautions against implying a direct causal relationship, it notes changes in oil prices could signal broader price changes. \u201cTaken together, these two graphs suggest that large and sustained oil price movements have historically coincided with changes in both food prices and broader consumer inflation,\u201d the report reads.<\/p>\n<p>\u201cWe\u2019ve seen oil top $100 a gallon before and that happened to coincide with significant food price inflation,\u201d Volpe said. \u201cMost [food companies] operate on very thin margins, so that means that when important sources of costs increase, they have no choice but to pass those along downstream, to consumers.\u201d<\/p>\n<p>The war is also impacting another critical supply chain that feeds into your grocery bill: fertilizers. More than <a aria-label=\"Go to https:\/\/unctad.org\/news\/hormuz-shipping-disruptions-raise-risks-energy-fertilizers-and-vulnerable-economies#:~:text=Strait%20of%20Hormuz%20disruptions:%20The,used%20by%20ships%20is%20rising&amp;text=9%20March%202026-,Source:%20UN%20Trade%20and%20Development%20(UNCTAD)%2C%20based%20on,3.5%25%20for%20high%20sulphur%20fuel.&amp;text=Around%20one%20third%20of%20global,some%20of%20the%20poorest%20countries.\" href=\"https:\/\/unctad.org\/news\/hormuz-shipping-disruptions-raise-risks-energy-fertilizers-and-vulnerable-economies#:~:text=Strait%20of%20Hormuz%20disruptions:%20The,used%20by%20ships%20is%20rising&amp;text=9%20March%202026-,Source:%20UN%20Trade%20and%20Development%20(UNCTAD)%2C%20based%20on,3.5%25%20for%20high%20sulphur%20fuel.&amp;text=Around%20one%20third%20of%20global,some%20of%20the%20poorest%20countries.\" rel=\"nofollow noopener\" target=\"_blank\">one-third of the global seaborne fertilizer<\/a> travels through the Strait of Hormuz. Since the start of the war, the price of urea, the nitrogen-rich compound present in most fertilizers, has spiked 35%. That\u2019s made inputs pricier for American farmers. And the price spike is untimely. Farmers are just starting to plant crops for the season, meaning fertilizer is in high demand, including for America\u2019s favorite crop: corn.<\/p>\n<p>\u201cCorn is king in the US,\u201d Volpe said. \u201cIf fertilizer disruptions or inflation drives higher corn prices, that is going to be felt everywhere throughout the food supply.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"Energy is one of the most critical inputs for the food supply chain, which means the impacts of&hellip;\n","protected":false},"author":2,"featured_media":520875,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[36],"tags":[28,101,25138,2402,801,3310],"class_list":["post-520874","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-business","tag-economy","tag-grocery","tag-inflation","tag-iran","tag-oil"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/520874","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=520874"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/520874\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/520875"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=520874"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=520874"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=520874"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}