Grocery Inflation Moderating, CPI Shows

Grocery price inflation moderated slightly in September, led by deflationary prices for pork, chicken and milk, according to the U.S. Bureau of Labor Statistics.

Consumer Price Index for Food at Home, 12-Month Percentage Change

Source: U.S. Bureau of Labor Statistics

The Bureau’s Consumer Price Index for food at home, which was unchanged in August, fell 0.1% in September, with its food group indexes mixed. The index for meats, poultry, fish and eggs fell 1% in September, with all its major component indexes falling. The fruits and vegetables index also fell, declining 0.5%. The index for dairy and related products declined 0.3%.

The index for cereals and bakery products increased 0.6%, as did the index for nonalcohol beverages. The index for other food at home rose 0.2%.

Within categories, pork deflation intensified in the month, with the index dipping to -2.4% from a 1.4% decline in August. Poultry slid from flat in August to -0.8% in September, while chicken, which showed 0.4% inflation in August, turned slightly deflationary (-0.2%). Milk remained deflationary at -0.9% but moderated from August.

On a 12-month basis, the index was up by 0.4%, indicating a modest pace of price increases overall for grocers.