Supermarket prices rose just 0.1% in November as lower costs for beef, pork and poultry offset higher prices for fruits, vegetables, cereals and bakery products, the Bureau of Labor Statistics reported Tuesday.
Year over year, inflation continues to slow. The cost of eating at home has risen 1.7% over the past 12 months, according to the Consumer Price Index for November. Grocery prices rose 0.3% in October and 0.1% in September.
The 1.7% inflation rate for groceries since November 2022 is the lowest 12-month increase since June 2021, according to the White House Council of Economic Advisers.
The overall CPI was up 0.1% in November, driven by an increase in housing costs, after being flat in October.
Poultry prices dropped 0.9% in November, while beef and veal prices fell 0.3%, and pork prices were down 0.1%, led by a 2.1% drop in the cost of bacon.
The cost of cereals and bakery products rose 0.5%, led by a 1.4% increase in the price of flour.
Prices for fruits and vegetables were 0.3% higher in November, reflecting increases for apples, oranges, potatoes and tomatoes.
USDA’s Economic Research Service, which forecasts retail food prices, expects the cost of eating at home to rise just 1.6% in 2024, which would be the smallest increase since 2019. Grocery prices have risen by an average of 2.5% a year over the past 20 years.
Andy Harig, vice president of tax, trade, sustainability and policy development for FMI-The Food Industry Association, which represents grocery chains, said the November report “demonstrates that the inflation rate for food-at-home continues to head in the right direction for American consumers, dropping to 1.7% on a year-over-year basis.
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"But even as inflation gets back on par with historical averages, consumers must remain flexible and tactical with their purchasing decisions to get the greatest value as we head into the holiday season.”
In a statement, President Joe Biden said the November CPI "demonstrates continued progress" in the fight against inflation. Consumer perceptions of the economy and inflation are posing a major challenge for Democrats heading into the 2024 elections.
"Inflation has come down while unemployment has remained below 4 percent for the longest stretch in 50 years, which means that workers’ wages and household wealth are higher now than they were before the pandemic, adjusted for inflation. Prices have declined for a number of products over the last year from cars and gallons of gas to TVs, toys, and many appliances to eggs and milk," Biden said.
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