For the second straight month, the rise in the Consumer Price Index for consumers living in urban areas was minimal. It was up just 0.2% in June on a seasonally adjusted basis after a 0.1% increase in May, according to the U.S. Bureau of Labor Statistics.
The news was even better for the all items index, which includes food. The index experienced the smallest 12-month increase (3%) in over two years.
The food-from-away index rose just 0.1% in June while the food-at-home index remained flat following a 0.1% increase in May. Only two of the six major grocery store food group indexes were up in June. Fruits and vegetables followed a 1.3% increase in May with a 0.8% uptick in June, while cereals and bakery products rose 0.1% last month.
For the second consecutive month, the index for eggs dropped significantly, and in June the index was down 7.3%. The drop helped keep the index for meats, poultry, fish, and eggs down 0.4% in June. The other food-at-home index dipped 0.2% for the month after posting a 0.4% increase in May. The dairy and related products index was down 0.3% in June and the nonalcoholic beverages index decreased 0.1%.
Over the last 12 months, the food-at-home index was up 4.7%, led by the cereals and bakery index, which spiked 8.8%. The dairy and related products index increased 2.7% year-over-year and the nonalcoholic beverages index was up as much as 7.6%. The meats, poultry, fish, and eggs index is the only grocery category showing a decrease in the last 12 months at 0.2%.
CNN noted some food suppliers initially raised prices due to difficulties in the supply chain during the COVID-19 pandemic, and because there has not been much pushback from retailers food prices are expected to remain high.
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According to CNN, suppliers bumped prices up during the COVID-19 pandemic due to supply chain issues, and even though those issues have subsided costs still remain high because the suppliers have not received any pushback. Do you think grocery prices will start to decline by the end of the year?
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