Inflation hits rural Alaska as food costs climb

ANCHORAGE, Alaska (KTUU) - Alaska food prices have taken a big leap from April of last year to April of this year — jumping 11.3%, according to federal figures — with the cost of food rising an average of 1.2% across the state over the last decade.

Sticker shock for groceries is nothing new for rural Alaska, but many of those prices are being pushed further and further.

While federal statistics only look at urban Alaska, the Alaska Commercial Company has 34 stores serving many communities off the road system and said their prices have risen over the past year.

“In our AC store in Nome, a gallon of milk was $6.99 last year, it’s $7.99 this year,” ACC president Kyle Hill said. “So, it’s a buck more, and for the customer every week, you know, that’s a lot of money.”

The rise in food prices varies depending on the item, and Hill noted eggs rose 10 cents, versus a dollar increase for a gallon of milk over the past year. Hill said a big driver for the bump in prices is rising shipping, labor and production costs.

“We’ve tried to run the most effective and efficient stores by reducing operating costs wherever we could so that we could not pass on these inflation area increases,” Hill said. “However, in some cases, we’ve had to pass them on, and just like the rest of the country our inflation rate is trending at 7 or 8% right now year over year.”

The AC store president said they’re hoping inflation will plateau in the next six months, and encouraged shoppers to buy in bulk and choose lower-priced brands if they have the option.

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