CPI: Grocery Prices Up Modestly in July

The Consumer Price Index (CPI) for food at home, a proxy for inflation in U.S. grocery stores, increased modestly in July vs. the same period last year, but the 0.2% rate of increase was unchanged from June, according to the Bureau of Labor Statistics.

The figures also showed a narrowing gap between the Producer Price Index (PPI), indicating input costs, and CPI, which could pressure profits for grocers. PPI figures for the same period, also released late last week, indicated prices deflated more modestly than they had in June.

Consumer Price Index for food-at-home, 12-month change 

Analysts say there is typically a six- to eight-month lag between producer and consumer prices.

In July, the CPI increased by 0.4% from the same period last year but showed mixed results by category. Of the six major grocery categories, fresh fruits and vegetables ( 0.9%) and meat, fish, eggs and poultry ( 0.9%) showed the largest increase. Cereals and bakery products and other food at home also showed increases, while dairy and related products and nonalcoholic beverage categories fell.

Within those categories, chicken prices rose but pork fell; eggs remained inflationary, but milk prices dropped.