Supermarket prices were broadly steady in February as lower costs for dairy products, fruits, pork and chicken offset increases for beef, eggs, sugar and other products.
Despite some relief at grocery stores, the overall Consumer Price Index rose 0.4% in February, largely driven by new increases in the cost of housing and energy, the Bureau of Labor Statistics reported Tuesday.
The price index for eating at home had risen 0.4% in January and 0.2% in December but is up just 1% from February 2023 as food inflation returns to more normal patterns after the spikes in 2021 and 2022.
USDA’s Economic Research Service forecasts grocery prices will rise 1.6% this year, down from 5% in 2023 and 11.4% in 2022. The 20-year average inflation rate for eating at home is 2.7%
Shoppers continue to see higher prices for beef amid tight cattle supplies, according to the February CPI. The price of ground beef rose 0.6% in February and the overall price of beef was up 0.5%. Pork prices, however, fell 0.8% despite the cost of bacon being up 0.5%, and chicken cost consumers 1.3% less in February.
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Prices for eggs were up 5.8% in February and continue to rebound from the 2023 lows and 2022 spikes driven by the last major outbreak of highly pathogenic avian influenza outbreak. Egg prices are still down 17% from February 2023 but last month’s price jump follows increases of 3.4% in January and 3.7% in December.
Prices for dairy products fell 0.6% in February and prices for fresh fruits dropped 1.6%, led by lower prices for apples and oranges. Prices for cereals and baked goods rose 0.5%.
Sugar prices continue to move upward, rising 0.6% last month amid historically strong domestic and international prices. The cost of sugar is up 6.1% year over year.
In a statement, President Joe Biden insisted that his policies are holding down the cost of living.
"Inflation is down two-thirds from its peak and annual core inflation is the lowest since May 2021. Wages are rising faster than prices over the last year and since the pandemic. Prices for key household purchases like gas, milk, eggs, and appliances are lower than a year ago," Biden said.
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