July 12th, 2023 7:00am PDT
(PenniesToSave.com) – Grocery prices are showing a gradual decrease, although inflation still has an impact. In June, food prices saw a small increase of 0.1% compared to the previous month. This rate of increase remained unchanged from the previous month but was lower than the 0.2% increase observed in April. However, there was a slight decrease of 0.1% in grocery prices, just slightly lower than the previous month’s stable pricing. When looking at the year-over-year data, grocery prices rose at a slower rate compared to the previous month’s figures, with a 4.7% increase overall. These insights stem from the Bureau of Labor Statistics’ June Consumer Price Index.
According to economist Steve Reed of the Bureau of Labor Statistics, this represents the smallest change within a 12-month period since September 2021.
Now, let’s focus on some positive news: Egg prices are consistently decreasing. Monthly data shows a 7.3% decrease in egg prices, while comparing the same period year over year reveals a significant 7.9% drop. As of June 2023, a dozen large grade-A eggs can be purchased for $2.22, which is considerably lower than the January price of $4.82.
The decrease in the price of eggs also resulted in an overall decline in the category of meats, eggs, poultry, fish, and eggs. This category saw a 0.1% decrease compared to the previous month and a 0.2% decrease compared to the previous year. Other pork products such as roasts, steaks, and ribs decreased by 2.1% compared to the previous month, while lunch meats decreased by 0.6%. However, prices for uncooked beef roasts and uncooked ground beef remained higher with a 1.6% increase last month.
The dairy industry and related products experienced a slight decline, with a decrease of 0.5%. Specifically, the price of milk saw a monthly decrease of 0.7%, while fresh fruits dropped by 1.1%. However, there was a partial offset due to a 4.6% increase in tomato prices.
The prices of nonalcoholic beverages and beverage materials saw a slight decrease of 0.1%, mainly due to a decline in instant coffee prices by the same percentage.
Some categories and specific items are still facing ongoing inflation, especially processed foods. The prices of these products are affected by various factors including the cost of raw materials as well as inflation in labor, transportation costs, and other elements. Ultimately, all of these contribute to the prices that consumers encounter in stores.
Prices for cereal and bakery products rose by 0.2% last month and have increased by 8.8% compared to the previous year. Particularly, the price of fresh sweet rolls, coffeecakes, and doughnuts saw a monthly increase of 2.0%.
Prices for items like sugar, sweets, fats and oils, and snacks in the “other food-at-home category” remained stable compared to the previous month but saw a 7.1% increase compared to the same time last year.
In the food category, candy and chewing gum prices experienced a notable increase of 2.2% in June, which marked the largest surge since January 2020. Conversely, salad dressing prices slightly decreased by 1.5%, but still showed a significant jump of 10.3% compared to the previous year. Margarine prices saw a substantial rise of 13.1% when compared to June of the previous year, while butter prices experienced a slight relief with a decrease of 1.4% year over year
Although grocery costs have seen a small decline, inflation continues to be a concern, particularly for processed foods. Rising labor and transportation expenses play a role in the overall impact on consumer prices. It is crucial to pay attention to specific items within these categories, as some may undergo significant price hikes while others may experience slight relief. By keeping tabs on these trends, consumers can make informed decisions and navigate the changing landscape of food prices.