Grocery prices rose 0.7% in April, led by sharp increases in fruits and vegetables, beef, and nonalcoholic beverages.
Fresh produce prices jumped 1.8% in a single month and are now up 6.1% over the past year.
Beef prices surged 2.7% in April, helping push the meats, poultry, fish, and eggs category up 1.3%.
American consumers saw another jump in supermarket prices in April, with fresh produce, beef, and beverages posting some of the largest increases in the latest federal government inflation data.
The Bureau of Labor Statistics reports that the “food at home” index — a measure of grocery store prices — increased 0.7% in April after remaining flat in March. Five of the six major grocery categories tracked by the government increased.
The steepest monthly increase came from fruits and vegetables, which climbed 1.8% in April. Over the past 12 months, produce prices have risen 6.1%, making it one of the fastest-growing food categories in the Consumer Price Index basket.
Beef drives meat prices higher
Beef prices also continued to rise sharply. The CPI showed the broader meats, poultry, fish, and eggs category increased 1.3% during the month, driven largely by a 2.7% jump in beef prices.
Nonalcoholic beverages, including coffee and other drink products, rose 1.1% in April and are up 5.1% over the past year. Analysts have linked some of those increases to higher transportation and import costs, along with poor crop conditions in key producing regions.
Dairy prices rose 0.8% in April, although the category remains down 0.6% from a year ago. Cereals and bakery products posted a more modest 0.1% monthly increase and are up 2.6% annually.
One of the few areas where consumers caught a break was the “other food at home” category, which declined 0.4% in April.
Dining out isn’t getting any cheaper
Overall, grocery prices are now 2.9% higher than a year ago, according to the CPI data. Restaurant prices also continued climbing, with food-away-from-home prices up 3.6% annually.
Economists say food price increases are tied to the surge in the price of diesel fuel since the start of the Iran war. They note that higher fuel costs are adding pressure throughout the food supply chain, increasing transportation, packaging, and production expenses.
The April CPI report showed gasoline prices rising 5.4% during the month and 28.4% over the past year.
Wholesale prices are also rising
There could be more bad price news in the weeks ahead. The Producer Price Index, a measure of inflation at the wholesale level, rose 1.4% in April, the largest one-month increase since March 2022.
Nearly three-quarters of the April advance in the index for unprocessed goods for intermediate demand can be attributed to prices for crude petroleum, which moved up 11.3%.
The indexes for raw milk, slaughter steers and heifers, natural gas, iron and steel scrap, and fresh vegetables (except potatoes) also rose. These higher wholesale costs normally get passed along to consumers at the retail level.