August Grocery Prices Flat with 2.2% Annual Rise

The Consumer Price Index for food at home was unchanged from July to August. The U.S. Bureau of Labor Statistics reported this data on Friday. The overall CPI for all goods increased by 0.4 percent during the same period. Grocery inflation for the twelve months through August stands at 2.2 percent. This figure is lower than the 3.4 percent overall inflation rate. Energy prices are the primary driver of the higher general inflation figure.

Lettuce prices drive produce decline

Fresh fruits and vegetables fell by 0.7 percent in August. The lettuce index dropped by 6.2 percent for the month. This followed a 16.4 percent decline in July. Consumption of lettuce had fallen sharply after a cyclosporiasis outbreak earlier in the summer. Falling produce prices offset small increases in other grocery categories.

Meat and dairy categories rise

Eggs rose by 2.9 percent on a seasonally adjusted basis. The meat, poultry, fish, and eggs category gained 0.1 percent. Dairy and related products increased by 0.3 percent. Nonalcoholic beverages were up 0.2 percent. Other food at home rose by 0.1 percent. The index for cereals and bakery products remained flat.

Energy costs drive overall inflation

Fuel oil prices increased by 10.1 percent in August. The twelve-month index for fuel oil is up 52 percent. Motor fuel rose by 4.1 percent in August. The twelve-month span for motor fuel shows a 27.9 percent increase. Airline fares were up 2.7 percent in August. The twelve-month figure for airline fares stands at 23.4 percent. These factors contribute to the higher overall CPI reading reported by GN markets/inflation (en-US).