Grocery Inflation Sticks Around in November, Up 1.6% for the Year
As 2024 wraps up, grocery inflation hasn’t quite left the scene. The latest Consumer Price Index (CPI) data reveals yet another hike, on top of successive increases, in prices for food at home.
According to the Bureau of Labor Statistics (BLS), grocery inflation inched up 0.5% in November, with four of the six indexes posting higher prices. The CPI for meats, poultry, fish and eggs went up 1.7% over the month, with eggs continuing their ongoing supply-related climb with a 8.2% increase.
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Also in grocery, nonalcoholic beverage prices rose 1.5% in November after going up 0.4% the prior month, and “other” food at home ticked up by 0.1%. Shoppers paid 0.2% more for fruits and vegetables during that time frame.
There was some relief in cereals and bakery products, as that CPI dipped 1.1%, the largest one-month decrease ever reported, according to BLS. The dairy and related products inflation rate also went down by 0.1%.
Looking back on a full-year timeline, the food-at-home index rose 1.6% over the last 12 month. The biggest gains came in meats, poultry, fish and eggs, up 3.8% on a year-over-year (YoY) basis.
Still, grocery inflation in 2024 came in lower than foodservice inflation. Per BLS data, the CPI for food away from home increased 3.6% YoY.
Overall inflation continues an easing-but-elevated pattern. The general CPI edged 0.3% higher in November, after going up 0.2% during each of the previous four months. On a YoY basis, the all-items index rose 2.7% before seasonal adjustment.
Andy Harig, VP of tax, trade, sustainability and policy development at FMI - The Food Industry Association, put the latest numbers into perspective. “Today's CPI numbers show that inflation is a stubborn thing, and the U.S. still has some work to do to fully tame it. Food-at-home remains well below the Fed's overall 2% target, coming in at 1.6% on a year-over-year basis. But the slight tick upward to 0.5% in the monthly figure bears watching,” he observed, adding, “But November's numbers continue to demonstrate that, for consumers looking for affordability, eating at home is still the best bet.”
Harig noted that consumers’ resilience is still in parallel to price trends. “As we approach the December holidays, consumers tell us they continue to feel confident in managing their grocery budgets. In fact, 85% of grocery shoppers report that they have at least some control over their grocery expenses,” he said.
