Economist Steve Moore looks at the economic outlook in the United States on The Bottom Line.
American consumers are continuing to face elevated inflation despite the pace of price growth slowing, with grocery price growth continuing to strain household budgets.
The Labor Department on Thursday released the September consumer price index (CPI) – a broad measure of how much everyday goods like gasoline, groceries and rent cost – which showed prices were up 2.4% from a year ago and 0.2% compared with August.
Food prices increased 0.4% last month compared with August and are up 2.3% from last September, just shy of the headline inflation gauge. The cost of food away from home is up 3.9% compared with a year ago after rising 0.4% in September, while prices for food at home are up 1.3% from last year.
Prices for meats, poultry, fish and eggs increased 0.8% in September and are up 3.9% from last year, which was the largest annual increase of the major food categories tracked in the CPI.
INFLATION RISES 2.4% IN SEPTEMBER, ABOVE EXPECTATIONS
Food prices increased 0.4% in September compared to a month ago and are up 2.3% from last year. (Photo by Spencer Platt/Getty Images / Getty Images)
Eggs saw the largest price increases on both a monthly and annual basis, as prices spiked 8.4% from August to September and are up 39.6% compared to last year.
Inflationary pressures driven by typical cost pressures and consumer demand for eggs have been exacerbated by avian flu outbreaks that have caused egg producers to quarantine or, in some cases, euthanize flocks, which has constrained egg supplies.
MCDONALD’S SUES SEVERAL MEAT PACKING COMPANIES, CLAIMS THEY COLLUDED TO INFLATE BEEF PRICES
Inflation remains above the Fed’s 2% target, straining consumers’ budgets. (Amy Beth Bennett/South Florida Sun Sentinel/Tribune News Service via Getty Images / Getty Images)
Beef and veal prices are up 4.2% from a year ago, while other types of meat have seen smaller 12-month price hikes, including pork (+1.5%) and poultry (+0.5%).
Prices for fruits and vegetables rose 0.9% in September from a month ago and are up 0.7% from a year ago. Frozen noncarbonated juices and drinks were up 15.3% in September compared with last year.
Dairy products are up 0.5% compared with last year and were little changed compared with a month ago. Milk is up 0.8% in September compared with a year ago despite a monthly price decline of 0.3%.
MAJOR MCDONALD’S FRENCH FRY SUPPLIER CLOSES PLANT IN WASHINGTON, SLASHES JOBS AS INFLATION CONTINUES
Coffee prices declined 1% in September relative to last year. (Photo by Robert Nickelsberg/Getty Images / Getty Images)
There are some grocery items that have experienced price declines or are largely flat compared with last year.
Prices for cereal and bakery products are little changed from a year ago, up 0.3% on a monthly basis.
Coffee prices declined 1% in September relative to last year even though they were up 1.7% on a monthly basis compared with August.
Apple prices were down 11.3% in September on an annual basis despite rising 2.4% compared with a month ago.
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Prices for potatoes are down 3.5% from a year ago even as they increased 1.8% on a monthly basis.
Ham prices declined 2.5% from a year ago, while fish and seafood prices were down 1.3%.
