Food Prices Jump over 10%
Food prices jumped 10.4% from year-ago in June – the biggest annual gain since February 1981. Inflation at the grocery store level in June was 12.2% higher than the previous year compared to a 7.7% increase for food consumed away from home (restaurants).
The data showed broad price increases across most categories of food, with especially sharp increases in butter, sugar, sweets and flour. The only major grocery index to decline in June was for meats, poultry, fish and eggs, which fell 0.4 point over the month as the indexes for beef and pork declined.
Still... compared to year-ago, grocery store prices rose 4.1% for beef, 9.0% for pork and 18.6% for chicken. Much of the year-over-year increase in those broad categories was driven by less expensive cuts, signaling consumers are shifting their buying patterns amid the strong food inflation. A shift to less expensive proteins is likely to continue until inflation eases.