Inflationary Pressure on Food Prices Persists

According to the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.2% in September, mirroring the changes in August and July. Food prices surged, with the food index rising by 0.4% in September after only a 0.1% rise in August. Food-at-home prices also climbed 0.4%, while food-away-from-home increased by 0.3%.

Andy Harig, Vice President Tax, Trade, Sustainability, and Policy Development of FMI—The Food Industry Association—commented on the September 2024 CPI data.

He noted that inflation remains uneven, with food prices influenced by multiple volatile factors.

Some Improvements in Food Prices

Despite this, Harig highlighted the progress made in addressing food price inflation. Year-over-year, food-at-home inflation stands at 1.3%, a solid improvement.

“Food-at-home price increases remain cooler than food away from home. Food from grocery stores is still the most economical option for consumers, as evidenced by food inflation continuing to be markedly lower than both ‘core’ and overall inflation,” Harig said.

He remains cautiously optimistic that the worst of food price inflation has passed. However, upcoming challenges like the impact of Hurricanes Helene and Milton remain a concern.

He emphasized the resilience of the food supply chain, bolstered by safeguards developed during the COVID-19 pandemic. These safeguards are crucial to protecting against future disruptions.

FMI and its members will continue to work to ensure that the U.S. food system remains abundant, safe, and affordable for consumers.

Five Food Group Price Indexes Increased

Five of the six major grocery store food group indexes rose in September. The meats, poultry, fish, and eggs index increased by 0.8%, with egg prices jumping by 8.4%.

The fruits and vegetables index rose by 0.9% after a 0.2% decline in August. Other food-at-home prices grew by 0.2%, while cereals and bakery products increased by 0.3%.

The dairy and related products index increased by 0.1%, and the nonalcoholic beverages index remained steady in September without any change.

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The food-away-from-home index climbed by 0.3% for the second consecutive month. Full-service meals increased by 0.4%, while limited-service meals saw a 0.2% rise.

The food-at-home index rose 1.3% year over year. Meats, poultry, fish, and eggs saw the biggest jump at 3.9%, while nonalcoholic beverages increased by 1.3%.

The prices of fruits and vegetables increased by 0.7%, and the prices of other food at home rose by 0.4%. Dairy prices increased by 0.5%, and cereals and bakery products increased slightly by 0.1%.

Food-away-from-home prices increased by 3.9% over the last year. Limited-service meals rose by 4.1%, and full-service meals increased by 3.9%.