Grocery inflation jump at the lowest rate since June 2021, meat prices still growing
The next grocery trip may not be filled with as much sticker shock as years past.
In the month of August, food prices overall grew 2.1% from a year ago, per the latest data from the Bureau of Labor Statistics. It was up 0.1% from July.
Food at home (groceries) jumped 0.9% year over year and remained flat month over month.
"We're in a situation where food at home is really decelerated," BLS economist Steve Reed told Yahoo Finance over the phone. The year-over-year change in grocery prices is the lowest since June 2021, matching trends seen pre-pandemic, he said.
Read more: Cell phones, furniture, used cars: Here's where prices are easing up as inflation cooldown continues
Food away from home, aka dining out, is still getting more expensive. Prices are up 4% compared to a year ago and up 0.3% from a month ago. Wells Fargo agricultural economist Michael Swanson told Yahoo Finance the higher prices might stick around permanently.
"I go back to what they call the bathtub effect. We have a lot of wage hikes behind us, but they're still going to be warming up the [prices] for a long, long time," he said.
Meat prices continue to move higher. The meats, poultry, fish, and eggs category overall was up 3.2% from a year ago. Top price growers include uncooked beef roasts, up 6.7%, and frankfurters, up 11%. Egg prices jumped a whopping 28.1%.
"We're seeing record imports right now of beef this year in the United States because we just don't have the beef that people are looking for," Swanson said.
Beef and veal, up 4.2%, did see their smallest increase since June 2023. Meanwhile, fresh fish and seafood prices dropped 2.7% year over year.
Eggs, on the other hand, are seeing worse news. Inflation jumped 28.1% from last August and 4.8% from July.
Swanson said the avian flu isn't as prominent as it used to be, so this jump is really an "open question."
Given its index is volatile in nature, Swanson added, "I don't have any real expectations anymore because it could just as well have been a lot weaker."
—
Brooke DiPalma is a senior reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected].