March grocery inflation flat overall CPI increase.

Beef and beverage prices remain high, while some food categories see a decrease in prices. Grocery inflation remains steady.

In the realm of grocery prices, the inflation rate has remained steady from month to month in March, showing a 1.2% increase on a yearly basis without seasonal adjustments. The consumer price index (CPI) for March saw a 3.5% increase over the past 12 months, primarily driven by housing and energy costs. This unexpected rise in the overall CPI caused concern among investors, leading to a drop in stock market prices as fears of delayed interest rate cuts by the Federal Reserve to combat inflation loomed.

Food prices away from home, such as at restaurants and foodservice outlets, experienced a 4.2% increase on a yearly basis, contributing to an overall 2.2% inflation rate for the food category over the 12-month period. Within the grocery sector, prices for various beef products continued to rise steadily each month, with ground beef, roasts, and steaks seeing significant increases over the year. Beef and veal prices surged by 7.6% overall, including a 6.2% rise for ground beef, an 11.2% increase for roasts, and a 7.2% jump for steaks.

Poultry prices also saw a 2.1% increase over the year, with fresh whole chickens leading the way with a 3% price hike. Conversely, egg prices showed a monthly increase but were down by 6.8% compared to the previous year. Nonalcoholic beverages remained at a high price point throughout the year, with a 2.4% overall increase, including a 4.2% rise for carbonated drinks and a 2.7% increase for non-carbonated, non-frozen juices and drinks.

Although some food categories experienced price drops, such as most dairy products which saw a 0.1% decrease for the month and a 1.9% decline over the year, others showed slight increases. Cereals and cereal products, for example, were down by 1.5% for the month and 1.3% for the year, particularly driven by a decrease in breakfast cereal prices. Breakfast sausage and ham prices also saw decreases in March, with a 4% and 4.7% drop respectively compared to the previous year.

Fruits and vegetables prices were a mixed bag, with apple prices down by 10.1% from March 2023, while overall fruit prices increased by 1.5%. Fresh vegetable prices rose by 3% compared to the previous year, with lettuce prices leading the way with a 5.8% increase. Frozen fruits and vegetables, on the other hand, saw a consistent decline in prices each month this year, resulting in a 0.9% decrease over the 12-month period.

Share With Others