Supermarket prices rose 0.4% in January despite price declines in the meat case and lower prices for milk, cereal and bakery products.
The overall Consumer Price Index rose 0.3% last month, fueled by the higher food prices and a 0.6% jump in housing prices; the rise in shelter costs contributed more than two-thirds of the CPI increase, the Bureau of Labor Statistics reported Tuesday.
Despite the jump in grocery prices in January, the cost of eating at home is up just 1.2% from January 2023. Grocery prices rose 0.1% in December and were unchanged in November.
USDA's Economic Research Service has forecast grocery prices to decline by 0.4% in 2024.
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January’s increase in grocery prices was driven in part by a 2.4% increase in prices for vegetables, a 3.4% jump in egg prices, a 1% increase in cheese prices, and sharply higher prices for coffee, juice and soft drinks.
Although consumers paid more for cheese, the price of milk fell 0.6% and the price index for dairy rose just 0.2%
Prices for tomatoes rose 4.6% last month, while lettuce cost 1.1% more, and prices for potatoes jumped 0.9%. Prices for other fresh vegetables rose 2.1%
Juice and carbonated drinks cost 1.2% in January, and coffee prices rose 0.9%.
Poultry prices overall fell but the price of fresh, whole chicken rose 0.5%. Prices for beef and pork both dropped 0.3%.
In a White House statement, President Joe Biden said, "Today’s report shows that wage growth has been the strongest of any economic recovery in 50 years. At a time when growth and employment remain strong, inflation declined by two thirds from its peak but we know there’s still work to do to lower costs."
