The cost of eating at home was unchanged for the second straight month in March as lower prices for dairy and grain products offset higher costs for beef, pork, chicken and eggs.
The overall Consumer Price Index rose 0.4% for the second straight month, driven by higher costs for housing and gasoline, the Bureau of Labor Statistics reported Wednesday. The cost of food eaten at home, on the other hand, hasn’t increased since it rose 0.4% in January. Supermarket prices have risen 1.2% since March 2023, which is less than the historical annual inflation rate for food.
USDA’s Economic Research Service has forecast that supermarket prices will increase 1.6% this year.
The slowing rate of food inflation masks continued increases in the meat case. Beef prices rose 0.2% in March after increasing 0.5% in February and are up 7.6% since March 2023.
Pork prices rose 1.1% in March, with bacon costing 0.9% more. Chicken prices rose 1.8%. Egg prices jumped another 4.6% after rising 5.8% in February and 3.4% in January.
Prices for cereals and bakery products fell 0.9%, and the cost of dairy products eased by 0.1%. Fruit and vegetable prices were up slightly, 0.1%; lettuce cost 5.9% more in March, while the price of bananas was up 0.6%.
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Andy Harig, vice president for tax, trade, sustainability and policy development at FMI-The Food Industry Association, which represents national and regional supermarket chains, said the latest food price data “continues to be positive for food shoppers and demonstrates that cooking at home is still the best choice for budget-minded shoppers. … Unfortunately, the data also indicates that despite recent moderation in inflation, there may still be some bumps on the road to our economic recovery.
“Factors such as volatile energy prices – which not only fuel overall inflation but also directly influence grocery prices through food production and transportation – continue to rise."
The cost of eating out for Americans continues to increase significantly. The cost of food eaten away from home rose 0.3% in March and is up 4.2% since March 2023. The index for limited-service meals has risen 5% in the past year, while full-service meals cost 3.2% more.
USDA estimates food-away-from-home prices will increase 4.1% this year.
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