Fuel prices may be easing, but grocery costs are up the most since 1979

Aug 12, 2022

Food prices jumped 13.1% in July, the biggest one-year increase since March of 1979. .

"[T]he bad news is that while some categories like gas have seen prices drop back, other essential areas like food eaten at home have seen inflation increases," he wrote this week in a research note. .

July's increase in food prices represents the seventh consecutive monthly increase of at least 0.9%, the Labor Department said on Wednesday.

Food at home — or meals prepared from grocery purchases — rose 1.3% last month, with all major grocery store categories seeing price jumps, the government said.

But many other food products also saw double-digit increases, including coffee, up 20%, butter (22%) and flour (23%), government data show.

Grocery shoppers are seeking bargains and cheaper brands in the aisles, and are also cutting spending in some nonessential categories to save money.

Market data provided by ICE Data Services