CPI: Food prices continue to rise
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.3% on a seasonally adjusted basis in December while the index for food rose 0.7%, the U.S. Bureau of Labor Statistics reported Tuesday.
Over the last 12 months, the all-items index increased 2.7% before seasonal adjustment.
The index for food rose 0.7% in December as did the index for food at home. Five of the six major grocery store food group indexes increased in December. The index for other food at home rose 1.6% over the month. The cereals and bakery products index increased 0.6% in December. The index for fruits and vegetables increased 0.5%, and the index for nonalcoholic beverages increased 0.4%. The dairy and related products index rose 0.9% in December. In contrast, the index for meats, poultry, fish, and eggs decreased 0.2% in December, as the index for eggs fell 8.2%.
The food-away-from-home index also rose 0.7% in December. The index for full-service meals rose 0.8% over the month, and the index for limited-service meals increased 0.6%.
The index for food at home rose 2.4% over the 12 months ending in December. The meats, poultry, fish, and eggs index rose 3.9% over the last 12 months. The index for other food at home increased 2.7% over the same period, and the index for nonalcoholic beverages rose 5.1%. The cereals and bakery products index increased 1.5% over the 12 months ending in December. The index for fruits and vegetables rose 0.5% over the year. In contrast, the dairy and related products index decreased 0.9% over the same period.
The food-away-from-home index rose 4.1% over the last year. The index for full-service meals rose 4.9%, and the index for limited-service meals rose 3.3% over the same period.
FMI – The Food Industry Association Vice President of Tax, Trade, Sustainability and Policy Development Andy Harig said, “Today’s CPI numbers reflect the ongoing challenge of bringing food inflation under control. Overall inflation remains stubbornly above the Federal Reserve’s 2% target, and food prices also disappointingly reflected this trend in December. While we are hopeful that a portion of this month’s number is likely tied to the holidays and may stabilize in 2026, we recognize the continued pressure on the American shopper’s wallet.
“Categories across the board saw notable increases, including 0.6% for cereals and bakery goods, 0.5% for fruits and vegetables, and 0.9% for dairy products. The bright spot in the data is the index for meat, poultry, fish and eggs, which fell 0.2%, with eggs in particular dropping 8.2% for the month. A decrease in protein prices is welcome news for shoppers that have experienced significant price increases in that category in recent months.
“We understand the frustration shoppers continue to feel about managing their grocery spending in this uncertain price environment. Our members are committed to doing everything they can to mitigate price increases in order to provide consumers with a variety of foods and household goods that fit within their budgets.”
