Inflation: Egg prices see largest monthly decline in 72 years, grocery prices slightly increase last month
To Americans looking for relief at the next grocery trip, it's slowly coming your way. Inflation is holding on but rising at a slower rate.
Grocery prices increased slightly in the month of May, rising 0.1% on a monthly basis, whereas on a year-over-year basis, grocery prices rose at a slower rate than last month, up 5.8%. That's according to the Bureau of Labor Statistics' (BLS) May Consumer Price Index (CPI) published Tuesday morning. Per BLS economist Steve Reed, that's the smallest 12-month change since October 2021.
"In general we're still seeing a deceleration, the 12-month changes coming down," Reed told Yahoo Finance.
Overall food inflation remains higher — rising 6.7% year-over-year in May, lower than last month which saw a 7.7% year-over-year jump. In May, overall food prices jumped 0.2% on a monthly basis.
The report had particularly good news for egg lovers. Eggs saw the largest monthly decline in 72 years. Year-over-year, a dozen eggs saw a decline of 0.4%, whereas month-over-month the cost of a dozen dropped 13.8%. That's the largest monthly decline since January 1951. As of May 2023, the cost of a dozen large grade-A eggs was $2.66. That's compared to $4.82 back in January of this year.
This helped to drive the overall meats, poultry, fish, and eggs category lower, down 0.9% month-over-month. The dairy and related products category also dropped on a monthly basis (-0.6%), driven lower by ice cream and related products (-2.0%).
Other items that saw a drop in price month-over-month include fresh biscuits, rolls, and muffins (-1.3%); bacon and related products (-1.4%), which dropped nearly 10% compared to last May; hot dogs (-2.6%); tomatoes (-1.9%); butter (-6.0%); and peanut butter (-0.9%).
Year-over-year, five out of the six of the major categories saw a declaration, produce was the outlier that saw an uptick compared to May 2022, up 2.7%.
Sugars and sweets see more 'persistent inflation,' other categories see increases in price
The sugars and sweets category rose 10.2% year-over-year in May, up 0.4% month-over-month.
"There does seem to be sort of more persistent inflation in those categories," Reed told Yahoo Finance.
Produce (fruits and vegetables) saw a 1.4% jump month-over-month. However, Reed wasn't too surprised about this — he said there is "often some volatility in these indexes, especially the some of the less processed foods." Apples saw a 1.9% monthly jump, and lettuce jumped 3.4%.
Other categories that saw a tick up in price: flour and prepared flour mixes (+1.4%); crackers, bread, and cracker products (+1.2%); uncooked beef roasts (+3.2%); ham (+3.7%), and fresh whole chicken (+1.9%). Nonalcoholic beverages and beverage materials, which declined back in April, saw a jump in price last month (+0.3%). Frozen noncarbonated juices and drinks alone jumped 7.4% in the month of May.
Margarine also remains higher, up 2.1% last month and up 22.5% year-over-year.
As far as food away from home, such as that at restaurants and bars, prices saw bigger jumps. On a yearly basis, prices for the category jumped 8.3%, and 0.5% on a monthly basis. This is the third consecutive month that food away from home outpaced food at home, per Goldman Sachs.
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Brooke DiPalma is a reporter for Yahoo Finance. Follow her on Twitter at @BrookeDiPalma or email her at [email protected].
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