Although the U.S. inflation rate is up for the second month in a row, the annualized food inflation rate of 4.3 percent is the lowest since the 3.7 percent rate in August 2021, said the Bureau of Labor Statistics on Wednesday. The food inflation rate has fallen each month since peaking at 11.4 percent in August 2022.
In the monthly Consumer Price Index report, the BLS said higher gasoline and housing prices had pushed the U.S. inflation rate to 3.7 percent for the 12 months ending in August. In the previous month, the inflation rate was 3.2 percent, and in June it was 3 percent.
Grocery prices rose 3 percent over the past year, led by cereals and bakery products, both up 6 percent. Prices for meat, poultry, fish, and eggs were unchanged. Prices in the food-away-from-home category, which includes school cafeterias, restaurants, and fast-food outlets, rose 6.5 percent.
Food is the second-largest consumer expense, after housing, accounting for 13 cents of each $1 in spending.