Grocery prices surged at their fastest monthly pace in more than three years in December, according to new data released Tuesday by the Bureau of Labor Statistics.
The Consumer Price Index showed food-at-home prices rose 0.7% in December, more than double the 0.3% increase recorded in September, the most recent month of data prior to the federal government shutdown. It marked the largest monthly gain since late 2022, when grocery prices also rose 0.7% in both August and September. The last time prices increased by more than that was July 2022, when they jumped 1.3%.
On a year-over-year basis, grocery prices were up 2.4% in December.
Most major grocery categories saw price increases during the month. Five of the six primary food-at-home indexes posted gains, led by a 1.6% increase in the “other food at home” category. Dairy and related products climbed 0.9%, while cereals and bakery products rose 0.6%. Prices for fruits and vegetables increased 0.5%, and nonalcoholic beverages edged up 0.4%.
The lone category to decline in December was meats, poultry, fish, and eggs, which fell 0.2% overall. Egg prices dropped sharply, down 8.2% for the month.
Year-over-year figures showed nonalcoholic beverages experienced the largest increase, rising 5.1% compared to December a year earlier. Prices for meats, poultry, fish, and eggs followed with a 3.9% annual gain. Other food-at-home items increased 2.7%, while cereals and bakery products rose 1.5%. Fruits and vegetables were up 0.5% year over year.
Dairy and related products were the only major grocery category to post an annual decline, falling 0.9% from a year earlier.
