Although it remains high, the food inflation rate is one third lower than it was at the start of the year, the government said on Tuesday. The food inflation rate of 10.1 percent in January has tumbled to 6.7 percent on an annualized basis, according to the Consumer Price Index report.
The food inflation rate was 1 percentage point lower in May than it was in the preceding month. The Bureau of Labor Statistics said egg prices fell by 13.8 percent during May, the largest decline for eggs since January 1951. Prices also declined for meat, fish, cereals and bakery products.
The CPI report pegged the overall U.S. inflation rate at 4 percent in May, the smallest 12-month increase since March 2021. Higher housing costs, up by 8 percent, were the major factor in the increase. Energy prices plunged by 11.7 percent in the past year.
Food price inflation peaked at 11.4 percent last August, and the inflation rate has fallen in each succeeding month.