Grocery prices rose at the fastest monthly pace in more than three years in December, according to new data released Tuesday by the U.S. Bureau of Labor Statistics.
According to the Consumer Price Index, dine-in prices rose 0.7% in December, more than double the 0.3% increase recorded in September, the most recent data before the federal government shutdown. This was the largest monthly increase since late 2022, when food prices also rose 0.7% in August and September. The last time prices rose more than that was in July 2022, when they rose 1.3%.
Compared to the same month last year, food prices rose 2.4% in December.
Most major grocery categories saw price increases during the month. Five of the six major eating-at-home indices recorded increases, led by a 1.6% rise in the ‘other eating-at-home’ category. Dairy products and related products rose 0.9%, while cereals and bakery products rose 0.6%. Fruit and vegetable prices rose by 0.5%, and non-alcoholic drinks rose by 0.4%.
The only declines in December were in meat, poultry, fish and eggs, with an overall decline of 0.2%. Egg prices plummeted, dropping 8.2% in the month.
Compared to the same month last year, non-alcoholic beverages showed the largest increase, increasing by 5.1% compared to December last year. This was followed by meat, poultry, fish and egg prices, which rose 3.9% annually. Other domestic food products increased by 2.7%, and cereals and bakery products increased by 1.5%. Fruits and vegetables increased by 0.5% compared to the previous year.
Dairy products and related products were the only major food category to record an annual decline, down 0.9% year-on-year.
