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Report: Grocery Inflation Flattened in August, but Is Up  2.2% This Year

Grocery prices were unchanged in August even as overall inflation accelerated, according to the latest Consumer Price Index report from the U.S. Bureau of Labor Statistics.

The Consumer Price Index for food at home was flat from July to August, while the broader CPI increased 0.4% on a seasonally adjusted basis. Over the past 12 months, grocery prices increased 2.2%, compared with a 3.4% rise in overall consumer prices. (Bureau of Labor Statistics)

Prices varied significantly across grocery categories. The index for fruits and vegetables fell 0.4% in August, while lettuce prices dropped 6.2% after declining 16.4% in July.

Meanwhile, egg prices rose 2.9% for the month. The broader meats, poultry, fish and eggs category increased 0.1%, while dairy products rose 0.3%, nonalcoholic beverages increased 0.2% and the “other food at home” category climbed 0.1%. Cereals and bakery products were unchanged.

Some grocery items remained significantly more expensive than they were a year ago. Beef and veal prices were up 5.9% over the 12-month period, while uncooked ground beef increased 7.2% and uncooked beef roasts rose 8.4%.

Fish and seafood prices also remained elevated, increasing 6.5% from a year earlier. Fresh fish and seafood prices rose 6.3%, while frozen fish and seafood increased 8.2%.

Eating away from home continued to become more expensive. Restaurant and other food-away-from-home prices increased 0.3% in August and were 3.4% higher than a year earlier. Full-service meal prices rose 0.4% during the month. (Bureau of Labor Statistics)

Energy prices were a major factor behind the broader increase in consumer inflation. The energy index rose 2.1% in August and was 16.3% higher than a year earlier. Fuel oil prices jumped 10.1% for the month and 52% over the past year. Motor fuel increased 4.1% in August and 27.9% compared with August 2025.

Gasoline alone rose 3.9% during August and accounted for more than one-third of the monthly increase in the overall Consumer Price Index, according to BLS.

Airline fares also increased sharply, rising 2.7% in August and 23.4% over the previous 12 months. Other categories posting year-over-year increases included recreation, medical care and personal care.

Overall, the August numbers show grocery inflation running below the broader inflation rate, although shoppers continue to face notable price increases for several staples, particularly beef, seafood and beverages.

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