The cost of food and eating out along with overall consumer prices rose in August and be up year over year but the increase was smaller than expected.
The cost of food and eating out along with overall consumer prices continued to rise in August and remain up year over year. Food prices were impacted by year-over-year double-digit increases in what consumers paid for some beef products. And while prices rose, the increase was less than expected and the smallest increase since February 2021, the Bureau of Labor Statistics (BLS) reported Tuesday morning releasing the monthly Consumer Price Index (CPI). The prices consumers paid for all goods rose 0.3% in August after rising 0.5% in July. For the last 12 months, prices consumers paid for all goods were up 5.3%, the BLS report said. For the past 12 months, overall food prices increased 3.7%, led by increases in beef. Food at home, meaning what you buy at grocery stores, increased 3% for the last 12 months as five of the six grocery indexes increased. More: Meijer’s Rivertown Market Jefferson in Detroit gets opening date More: Oakland County medical examiner determines Mudgie’s Deli owners death, deli remains closed More: COVID-19 cases in Michigan schools doubled in a week: Where there are outbreaks On last Friday’s Kroger second-quarter earnings call with analysts, the country’s largest grocer warned that they saw higher inflation and higher costs this year. While Kroger said they are working to manage increases, they are “passing along the higher cost to the customer where it makes sense to do so.” Kroger expects inflation to stick around with prices expected to rise 2-3% through the end of the year. Led by increases in meats, poultry, fish, and eggs, the prices consumer paid for food at grocery stores increased 0.4% in August after rising 0.7% in July. The overall index for meats, poultry, fish, and eggs rose 0.7% from July’s 1.5% increase but was up more than 8% for the year. Beef prices lead the increase and were up 1.
