Food prices rose 0.8% in June, doubling May’s increase of 0.4%, according to the latest CPI report. This change reflects significant price increases for both food at home and food away from home.
Food at home
Prices for food at home also went up by 0.8% in June, following a 0.4% increase in May. All but one of the major grocery store groups saw price growth for the month.
Yet again, the meats, poultry, fish, and eggs index was the greatest influencer of food at home price increases. After rising 1.3% in May, prices for the category went up 2.5% in June. This rise is primarily due to recent trends in beef prices, which jumped 4.5% in June — the largest one-month increase for this index since June 2020 — following a 2.3% increase in May.
Price changes for the other major grocery store groups included:
- Nonalcoholic beverages: +0.9% (-0.5% in May)
- Fruits and vegetables: +0.7% (Unchanged in May)
- Dairy and related products: +0.2% (+0.4% in May)
- Other food at home: +0.2% (Unchanged in May)
- Cereals and bakery products: -0.3% (+0.5% in May)
Over the past year, the food at home index rose by 0.9%, reflecting increases for all six major grocery store groups, of which fruits and vegetables was the highest at 3.2%.
Food away from home
Food away from home prices continue to go up, jumping 0.7% in June after May’s 0.6% increase. Prices for both limited and full service meals rose for the month, including the largest monthly increase for full service meals since June 2020:
- Full service meals: +0.8% (+0.6% in May)
- Limited service meals: +0.6% (+0.5% in May)
Prices for food away from home climbed 4.2% over the last year, the greatest 12-month increase for the index since May 2009. This increase includes price jumps of 6.2% for limited service meals and 4.1% for full service meals for the period.
Food prices at schools and workplaces, however, have fallen dramatically, dropping 29.9% over the past year.
It’s likely increasing costs of labor, ingredients, and shipping will continue to drive up food prices in the months ahead.
