US grocery inflation ticks up to 2.2% annually

Grocery price inflation in the U.S. remained steady at 2.2% for the year ending in August, with prices at home unchanged from July to August, according to data from the U.S. Bureau of Labor Statistics. This stability in grocery prices contrasts with an overall Consumer Price Index gain of 0.4% for all goods in August and 3.4% inflation overall for the 12-month period, largely influenced by energy price increases.

Within grocery categories, lettuce prices saw a significant decline of 6.2% in August, following a 16.4% drop in July, contributing to a 0.4% decrease in fresh fruits and vegetables overall for the month. However, other categories experienced slight increases. Egg prices rose 2.9% on a seasonally adjusted basis for August, contributing to a 0.1% gain in the meat, poultry, fish, and eggs category. Dairy and related products increased by 0.3%, non-alcoholic beverages by 0.2%, and other food at home by 0.1%. Cereals and bakery products remained flat.

Over the longer 12-month span, several products showed elevated prices, including beef and veal (up 5.9%), uncooked ground beef (up 7.2%), and uncooked beef roasts (up 8.4%). Fish and seafood prices were up 6.5% year-over-year. Food away from home, which includes restaurant prices, increased by 0.3% in August and 3.4% over the past 12 months, with full-service restaurants driving much of this increase. Energy costs, such as fuel oil and motor fuel, were significant contributors to the overall CPI increase.