The food inflation rate declined in November for the third month in a row to its lowest level since June, said the Labor Department on Tuesday. Despite the improvement, food prices are 10.6 percent higher than they were a year ago, according to the Consumer Price Index report.
Food prices are rising more rapidly than the overall inflation rate, which dropped to 7.1 percent, down from 7.7 percent in October. “Make no mistake — prices are still too high,” said President Biden. “We have a lot of work to do. But things are getting better, headed in the right direction.”
Analyst Mark Zandi of Moody’s Analytics said the CPI report “couldn’t have been better,” with inflation moderating for most goods and services. “Today’s report should help allay recession fears,” he said on social media. “Assuming this continues, which seems most likely, inflation will return to the Fed’s inflation target no later than mid-2024, without a recession.”
The food inflation rate has exceeded 10 percent since May, when it was 10.1 percent. In June, the rate was 10.4 percent.
“November marks the ninth month of double-digit increases in grocery food prices,” said David Ortega, food and agriculture economist at Michigan State University, on social media. “There is little relief for consumers at the grocery store.” The grocery inflation rate was 12 percent, down for the third month.
Prices rose during November for four of the six categories of groceries; fruits and vegetables, cereals and bakery products, dairy and related products, and nonalcoholic beverages. Prices for meats, poultry, fish and eggs declined, as did “other food at home,” which includes sugar, peanut butter, snacks and baby food. Beef prices fell by 5.2 percent from a year ago.