Grocery prices saw their biggest monthly jump in more than three years in December, new federal data show.
Most supermarket food categories posted increases, even as egg prices dropped sharply.
Restaurant prices rose at the same pace as grocery costs, adding pressure to household food budgets.
Think it's getting expensive eat out? It is, but it turns out it's getting more expensive to eat at home too. That's the conclusion of the Bureau of Labor Statistics, which found that grocery prices recorded their largest month-to-month increase in more than three years in December.
The food-at-home index rose 0.7% for the month, more than double the 0.3% increase recorded in September, the most recent month of Consumer Price Index data before the government shutdown. It marked the steepest monthly rise since late 2022, when grocery prices climbed 0.7% in both August and September. The last time prices rose faster was July 2022, when food-at-home costs jumped 1.3%.
On a year-over-year basis, grocery prices were up 2.4% in December, indicating continued — though uneven — inflation pressure at the supermarket.
Most grocery categories moved higher
Five of the six major grocery store food group indexes increased month over month in December, underscoring the broad-based nature of the price gains.
The “other food at home” category posted the largest monthly increase, rising 1.6%. 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 rose 0.4%.
The only category to decline was meats, poultry, fish and eggs, which fell 0.2% over the month. That drop was driven largely by egg prices, which plunged 8.2% in December.
Annual increases led by beverages and proteins
Year-over-year data show nonalcoholic beverages recorded the largest annual increase, rising 5.1% compared with December a year earlier. Meats, poultry, fish and eggs followed with a 3.9% increase, despite the recent monthly decline.
Other food at home rose 2.7% year over year, while cereals and bakery products increased 1.5%. Fruits and vegetables posted a modest annual gain of 0.5%.
Dairy and related products were the only grocery category to decline on a yearly basis, falling 0.9% from December 2024.
Restaurant prices also rise
Food prices increased beyond the grocery aisle. The overall food index rose 0.7% in December, matching the monthly increase for food away from home. Restaurant prices also climbed 0.7%, signaling that consumers are facing higher costs whether they cook at home or eat out.
The December data suggest that while food inflation has slowed from its 2022 peak, price pressures remain persistent — and uneven — across grocery categories and dining options.