CPI for food rises 0.2%, less than in April

The Consumer Price Index for food rose 0.2% in May after rising 0.5% in April, the Bureau of Labor Statistics said Wednesday.

The food-at-home index increased 0.1% over the month.

The increase in the price of food was lower than the CPI Index for All Urban Consumers, which increased 0.5% on a seasonally adjusted basis in May, after rising 0.6% in April. Over the last 12 months, the all-items index increased 4.2% before seasonal adjustment.

Indexes that increased over the month include communication, airline fares, medical care, personal care and recreation. Conversely, the indexes for motor vehicle insurance, household furnishings and operations, and new vehicles were among the major indexes that decreased in May.

Three of the six major grocery store food group indexes increased in May. The index for nonalcoholic beverages increased 0.6% over the month as the index for beverage materials including coffee and tea rose 1.1%. The cereals and bakery products index increased 0.4% in May, and the fruits and vegetables index rose 0.2%.

In contrast, the index for dairy and related products fell 0.6% in May as the index for cheese declined 2.9%. The meats, poultry, fish, and eggs index decreased 0.2% over the month. The index for other food at home was unchanged in May.

The food-away-from-home index rose 0.3% in May. The index for limited-service meals and the index for full-service meals both also rose 0.3% over the month.

The index for food at home rose 2.7% over the 12 months ending in May.

FMI-The Food Industry Association Vice President of Tax, Trade, Sustainability and Policy Development Andy Harig stated, “Today’s CPI numbers for food at home represent a clear cooling from April’s elevated figure and should be welcome news for grocery shoppers facing an otherwise challenging inflationary environment. Food-at-home inflation increased just 0.1% in May and 2.7% over the past year, coming off what will hopefully be the peak in oil prices that drove food prices higher in April.”

Harig continued, “This moderation in food price increases is a positive development, but it is important to remember that a number of factors continue to place upward pressure on costs throughout the food supply chain. Weather-related disruptions remain a significant concern including persistent drought, diminished snowpack out West, and an El Niño weather pattern that could negatively affect agricultural production. At the same time, the impact of increased fertilizer costs earlier this spring may not be felt on store shelves until this fall and beyond. Food companies are also facing increased costs for certain imported ingredients, equipment and packaging materials as tariffs continue to affect critical supply chain inputs. So, uncertainty around food price inflation will likely persist through the summer.”