After outrunning the rest of the U.S. economy for 19 months, food price inflation has slowed to 3.7 percent, the same rate as the nation overall, said the Bureau of Labor Statistics on Thursday. Dairy prices fell 0.2 percent on an annualized basis while meat, fish, poultry, egg, fruit, and vegetable prices rose modestly.
The food inflation rate was the lowest since August 2021, also 3.7 percent. The last time food inflation was lower than the U.S. rate was January 2022, 7 percent vs. 7.5 percent. Food inflation accelerated after that and peaked at 11.4 percent in August 2022, the highest rate in 43 years. The Consumer Price Index crested at 9.1 percent in June 2022.
“Food price inflation continues to moderate,” said economist David Ortega of Michigan State University on social media. “Grocery price increases are now well below their double-digit highs from a year ago.”
Cereals and bakery products were 4.8 percent higher than a year ago, the largest increase among the the six food categories, said the CPI report. “Other food at home,” which includes candy, butter, snacks, and baby food, rose 4 percent.