Food prices mushroomed by 11.4 percent in the past year, said the government’s monthly inflation report on Tuesday. August was the 15th month in a row the food inflation rate increased, starting from 2.2 percent in May 2021.
The annualized U.S. inflation rate of 8.3 percent for the 12 months ending in August was down from the previous 8.5 percent, according to the Consumer Price Index report. Gasoline prices were down and so were used-car prices.
Within the 11.4 increase in food prices, the Labor Department said grocery price are 13.5 percent higher than last August while food-away-from-home, which includes restaurant, carry-out and cafeteria food, was up by 8 percent.
Food is the second-largest consumer expense, after housing. The Bureau of Labor Statistics said meat, poultry, fish and egg prices were up by 16.4 percent and fruits and vegetables by 16.2 percent compared to 12 months ago.
“Today’s inflation report confirms that the United States has a serious inflation problem,” said Harvard professor Larry Summers on social media. “It is highly implausible that inflation will fall to 2 percent without unemployment exceeding 4.5 percent.”