U.S. food prices rose 0.7% in December, biggest monthly gain since 2022

Food prices climbed 0.7 percent in December, the largest one-month increase in grocery prices since October 2022, inflation data showed, offering little relief for consumers facing higher costs at the supermarket. Compared with a year earlier, food prices were up 3.1 percent. Several categories rose in December: fruits and vegetables increased 0.5 percent, coffee climbed 1.9 percent, and cereal and bakery products rose 0.6 percent.

Beef and veal prices rose 1 percent for the month and were up 16.4 percent from a year earlier, and many economists have pointed to a decline in the country’s cattle herd as the main driver of high beef prices. By contrast, egg prices fell 8.2 percent over the month after reaching record highs last year amid a bird flu outbreak that led producers to cull millions of hens.

The December jump followed a 0.2 percent increase in September, the last month the federal government released month-to-month inflation figures after a shutdown disrupted data collection. Food inflation has been more moderate in recent years compared with the steep surge in grocery costs in 2022, which was tied to a mix of supply and demand pressures related to the pandemic and other global events.

The White House has pointed to the Trump administration’s efforts to lower food prices.

Key Topics

Business, Food Prices, Inflation, Beef, Eggs, Cattle Herd