Food prices continue to climb, now for the tenth consecutive month, according to the most recent CPI report. June saw a 0.6% rise in the overall food price index, following a 0.7% increase in May and a historic 1.5% jump in April.
Food at home
After a 1% rise in May, food at home prices grew by 0.7% last month. Again, this jump is primarily due to significant increases in the meat, poultry, fish, and eggs category, which went up by 2% in June. After a record beef price increase of 10.8% in May, the beef index rose by 4.8% in June and has increased a total of 20.4% over the past three months.
Most of the major grocery store food groups experienced price increases last month, with the exception of dairy and related products:
- Nonalcoholic beverages: +0.7% (unchanged in May)
- Cereals and bakery products: +0.4% (-0.2% in May)
- Fruits and vegetables: +0.4% (+0.5% in May)
- Other food at home: +0.2% (unchanged in May)
- Dairy and related products: -0.4% (+1.0% in May)
The 12-month index change for food at home is now 5.6% (up from 4.8% in May) — its greatest jump since the period ending December 2011. For the year-long period, all major grocery store groups saw growth, the highest being a 12.8% price surge in meats, poultry, fish, and eggs (25.1% increase in beef prices). The other categories experienced price increases ranging from 2.3% (fruits and vegetables) to 5.3% (nonalcoholic beverages).
The latest USDA forecast anticipates that overall prices for food at home will rise by 2.5 to 3.5% this year, the largest increase since 2011.
Food away from home
The food away from home price index went up by 0.5% in June, slightly more than May’s 0.4% increase. With a 0.9% spike, the full service meals category experienced its highest monthly gain on record. Prices also rose for limited service meals, by 0.5%.
This brings the 12-month index for food away from home to 3.1% (up from +2.9% in May), with limited service meals at +4.1% and full service meals at +2.7% for the period.