The cost of groceries was flat in August as lower prices for vegetables, grains and baked goods helped offset price increases for beef, poultry, eggs and dairy products.
The Consumer Price Index for food eaten at home is up 0.9% over the past 12 months as food inflation remains well under the historical average. The grocery cost index rose 0.1% in June and July.
Prices in the meat and dairy case continue to bite into family budgets even though food inflation elsewhere in the store has moderated significantly.
The average price of eggs continues to increase sharply month over month, rising 4.8% in August after increasing 5.5% in July. Eggs cost 28.1% more in August than they did a year earlier.
Beef prices were 0.3% higher in August and are up 4.2% year over year, while poultry prices rose 1% last month but are only up 0.9% over the past year.
Prices for milk and dairy products rose 0.5% in August, although the cost of cheese was unchanged.
The cost of fruits and vegetables declined by 0.2% last month, led by lower prices for potatoes, lettuce and other fresh vegetables. Cereal and bakery products cost 0.1% less.
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USDA’s Economic Research projects that the cost of groceries will rise 1.2% this year and 1.1% in 2025. The average increase for the past 20 years is 2.7%.
Consumers continue to pay more for eating out, the expense of which is significantly affected by labor costs. The index for food eaten away from home rose 0.3% last month, after rising 0.2 percent in July, and is up 4% over the past year.
The overall CPI increased 0.2% in August, driven by a 0.5% increase in housing costs, and is up 2.5% over the past 12 months.
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