Supermarket prices rose 0.1% in May, despite declines in prices for dairy, eggs and some other products, according to the latest Consumer Price Index.
Grocery prices had dropped 0.2% in April and 0.3% in March, but the cost of eating at home is now up 5.8% over the past 12 months.
The overall CPI also rose 0.1% in May, driven by housing costs and higher prices for cars, the Bureau of Labor Statistics said Tuesday. The CPI is up 4% year over year.
"Today’s report is good news for hard working families," President Joe Biden said in a statement. "It shows continued progress tackling inflation at the same time that unemployment remains at historic lows.
"Annual inflation is now at the lowest level since March 2021, and less than half of what it was last June. After gas and grocery prices increased rapidly last year due to the war in Ukraine, inflation has fallen for 11 months in a row."
The May increase in supermarket prices was driven partly by higher prices for produce; the index for fruits and vegetables rose 1.3% in May. Lettuce cost 5.3% more last month, while the price of apples rose 1.9%. Tomato prices were up 0.7%.
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Egg prices fell 13.8% in May, which was the largest decrease for that item since January 1951 as the industry continues to recover from a lengthy outbreak of highly pathogenic avian influenza that caused skyrocketing prices last year. The index for dairy products was down 1.1% from April, while prices for baked goods were unchanged.
Beef prices rose 1% in May, but the cost of pork was down 0.8%.
Andy Harig, vice president for tax, trade, sustainability and policy development at FMI-The Food Industry Association, which represents major supermarket chains, said the data showed that food prices are stabilizing. "Particularly heartening is the number of items in grocery store aisles with declining prices, including eggs, cereals, meat and dairy," he said.
But he cautioned, “While we are heading in the right direction, grocers still face headwinds in terms of labor shortages and transportation challenges, and we anticipate that prices will likely remain above pre-pandemic levels for much of the year."
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