CPI Food Inflation Rate Slows Again in September

Retail prices for food were meaningfully up again in September but for the second straight month showed a decrease in the rate of inflation, according to figures from the Bureau of Labor Statistics’ Consumer Price Index.

The index of food at home—a proxy for supermarket inflation—showed a 4.1% year-over-year price increase but the index fell by 0.4% sequentially as five of the six major food groups declined their rate of growth as reported in August, when year-over-year prices were up by 4.6%. 

All six major grocery store food group indexes are up year over year, with increases ranging from 2.6% (cereals and bakery products) to 6.3% (meats, poultry, fish and eggs).

On a sequential basis, the index for nonalcohol beverages fell 0.8%, its largest monthly decline since December 2010, the Bureau said. The index for other food at home declined 0.6% in September after rising 0.5% in August. The index for dairy and related products declined 0.5% in September after rising 1.5% in August.

The index for meats, poultry, fish and eggs fell 0.4% in September, its third consecutive monthly decline. The index for fruits and vegetables also declined 0.4% in September as the index for fresh fruits fell 1.3%.

The index for cereals and bakery products was unchanged in September, the only major grocery store food group index not to decline.

Year-over-year higher prices in detailed expenditure categories include uncoooked beef roasts (up 11.9%); pork chops (up 11.2); beef and veal and uncooked ground beef (each up 8.3%); frankfurters (up 10.2); all poultry (up 7.9%) and milk (up 7.2% overall including a 9.2% increase in fresh whole milk). Eggs were up by just 0.1% and fresh fruits by 1.2%, led by lower prices for apples (-3.2%) and bananas (-2.1%).

The CPI’s food away from home index was up by 3.8% on a year-over-year basis, with the index for limited service meals increasing by 5.5% and the index for full-service meals up 2.8% over the past 12 months.