Lower prices for meat, poultry, fish and eggs were the driving factor for a slight decline in grocery prices during August, the second month in a row that supermarket prices were down, said the monthly Consumer Price Index. Despite the decreases, food inflation ran at 4.6 percent in the past 12 months, rising far more rapidly than the overall U.S. rate of 1.3 percent.
Meat prices surged in the spring due to coronavirus slowdowns and shutdowns of packing plants. Prices are moderating as processing plants return to their usual volumes. “The beef index fell 4.4 percent in August after declining 8.2 percent in July,” said the Bureau of Labor Statistics. “The cereals and bakery index also declined in August falling 0.2 percent.”
Overall, grocery prices decreased by 0.1 percent in August, following the 1.1-percent decline of July. Still, grocery prices were 4.6 higher than one year earlier. “All six major grocery store food group indexes rose over that span. The index for meats, poultry, fish, and eggs rose 7.1 percent over the last year as the index for beef increased 9.6 percent. Increases in the other groups ranged from 2.7 percent (fruits and vegetables) to 5.7 percent (dairy and related products).”
Food is the third-largest expenditure for consumers, behind housing and transportation. The Bureau of Labor Statistics says Americans spend 13 percent of their income on food.