March grocery inflation flat despite overall CPI increase

Grocery price inflation remained flat on a month-to-month basis in March, and was up 1.2% on a yearly basis, before adjusting for seasonality.

The overall consumer price index (CPI) for March was up 3.5% for the past 12-month period, which was higher than expected and was mostly driven by housing and energy costs. The higher-than-expected overall CPI sent stock markets tumbling as investors feared that the Federal Reserve would delay interest rate cuts as part of its ongoing effort to tame inflation.

The price index for food away from home — at restaurants and other foodservice outlets — was up 4.2% on a yearly basis, helping drive overall food inflation up 2.2% for the 12-month span.

Among grocery categories, prices for several beef products continued to tick upward on a monthly basis and were up sharply for the 12-month period, including ground beef, roasts, and steaks. Beef and veal overall were up 7.6% for the 12-month span, including 6.2% for ground beef, 11.2% for roasts, and 7.2% for steaks.

Poultry prices rose 2.1% for the year, led by a 3% increase for fresh whole chickens. The price of eggs, meanwhile, continued to increase month to month but was down 6.8% relative to a year ago.

Nonalcoholic drinks and materials also remained high for the full year, with prices up 2.4%, including 4.2% for carbonated drinks and 2.7% for non carbonated, non frozen juices/drinks.

Sugar and sweets, including candy and chewing gum, were down slightly in March but were still priced 4.3% higher than a year ago.

Prices fall for some items

Prices declined on a monthly and yearly basis for many food products, including almost all dairy categories. Overall, prices for the dairy category were down 0.1% for the month and 1.9% for the 12-month period.

Other categories that showed price declines included cereals and cereal products, which were down 1.5% for the month and 1.3% for the year, led by breakfast cereal, which was down 1.6% for the month and 1.7% for the year.

Prices for breakfast sausage and ham also dipped in March, and were down 4% and 4.7%, respectively, relative to a year ago.

Fruits and vegetables were a mixed bag, with prices for apples down 10.1% vs. March of 2023, but prices for fruits overall up 1.5%. Prices for fresh vegetables were 3% higher than a year ago, led by a 5.8% increase in the price of lettuce, including a 5.9% increase in March. Frozen fruits and vegetables have continued to decline in price each month this year and were down 0.9% for the 12-month period.

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Grocery price inflation remained flat on a month-to-month basis in March, and was up 1.2% on a yearly basis. Additionally, prices on several beef products continued to tick upward on a monthly basis and were up sharply for the 12-month period, including ground beef, roasts, and steaks.

Are you still seeing high prices for beef in your stores? Let us know in the comments below, or email the SN staff at [email protected].