While many economists and officials in the grocery industry are saying inflation is on the way down, the latest consumer price index shows a 0.3% increase in the month of December, reports CNBC.
That number is higher than the estimate of 0.2%, and for the year the CPI was up 3.4%. Projections for the last 12 months came in at +3.2%.
The year-over-year core CPI was the lowest since May 2021, but it still registered an increase of 0.3% in December and 3.9% for the year.
Shelter costs provided the biggest bump to the core CPI. Food prices rose 0.2% in December, replicating November’s increase.
“The recently released Consumer Price Index (CPI) report brings welcome news for Americans looking for an easing of inflation amidst recent economic challenges,” said FMI — The Food Industry Association Vice President, Tax, Trade, Sustainability and Policy Development Andy Harig. “Notably, the inflation rate for food-at-home has slowed to just 1.3% year-over-year (a drop of 0.4% since November), remarkable progress from just a year ago and signifying a positive trend towards market stabilization in the new year.”
According to a recent analysis of FMI shopper data, weekly household grocery spending has remained stable since the summer of 2023 while concerns about escalating food retail prices have eased since October. The December USDA Food Price Outlook anticipates grocery store prices will lower in 2024.
During Walmart’s third quarter earnings call, CEO Doug McMillon said grocery prices were on the decline in areas like dairy, chicken, and seafood, a trend which will put more unit pressure on Walmart moving forward.
