A recent report from the Bureau of Labor Statistics shows that the cost of food at home has only risen 1.3% in the past year, the lowest increase since June 2021. Overall food prices have only gone up 0.2% on a monthly basis, and for the year, they are up 2.7%, remaining below the overall inflation rate of 3.4%. However, food away from home, such as meals at restaurants, snacks from vending machines, and other venues, has seen a 5.2% annual increase.
Eggs and ham prices have increased the most in December, with eggs rising 8.9% and ham rising 2.6%. Bird flu has affected the egg industry, leading to a monthly increase that hasn't been seen since January of the previous year. Despite this, egg prices are down 23.8% compared to the previous year. The prices of fats, oils, peanut butter, and raw beef steak also increased in December. On an annual basis, frozen noncarbonated juice and raw beef steaks have seen the highest price hikes, at 19.1% and 11.2% respectively. These increases are due to bad weather and citrus disease affecting juice prices, and extreme droughts leading to a reduction in cattle herds and constricting beef supply.
On the other hand, some products have become cheaper, with lettuce down 4% from November and 16.7% from the previous year, and potatoes dropping 2.8% from November. Other items, such as tomatoes, apples, and fresh vegetables overall, have also seen annual price declines. Additionally, dairy products like cheese, butter, and milk have decreased in price by 3.3%, 2.9%, and 1.8% respectively.
Overall, while prices for certain food items have increased, others have become more affordable, providing some relief for consumers at the grocery store.