Grocery inflation loses steam in April
This story was originally published on Grocery Dive. To receive daily news and insights, subscribe to our free daily Grocery Dive newsletter.
Food-at-home prices increased in April at a 2% annual pace, down from 2.4% in March, according to Consumer Price Index data released Tuesday by the U.S. Bureau of Labor Statistics.
Across-the-board inflation ticked down last month to 2.3%, its lowest rate since February 2021.
The decline in grocery inflation in April represented the first monthly decline for the figure since October 2024.
Even as the unfolding tariff situation sparked concerns that food prices would quickly rise, grocery inflation lost steam last month by the largest amount since the figure dropped by half a percentage point in September 2020 — when food price growth was still tame ahead of the historic surge that kicked off in 2021.
Egg prices continued to play an outsized role in the rate of grocery inflation in April, as a nearly 50% year-over-year increase in the cost of the commodity helped push the BLS index that also includes meats, poultry and fish up at a 7% annual clip. That dynamic could change in the coming weeks, as figures from the USDA released May 9 show that the national average retail price for conventional caged eggs was down by 17% compared with the prior week, to $3.30 per dozen.
Coffee prices also stood out in April, posting an inflation rate of almost 10%. Instant coffee prices rose 13.5%, while the roasted variety came in at just over 9%.
Meat prices also moved ahead last month, with costs for beef and veal leading the way. Uncooked ground beef prices were up in April at a 10% annual rate, while raw steak cost 7% more than it did a year ago.
Pork prices, however, were up by just 1.3% in April, as bacon and related products saw inflation of just under 4% while the category that includes sausage dropped 1.1%. Ham prices moved ahead by 4.3%.
Annual pace of overall and food-at-home inflation since 2018, by month
Prices for other foods declined in April. Inflation in the fresh fruits and vegetables group dropped by 0.7%, with lettuce and tomato prices both down by over 6%. Dried beans, peas and lentils, however, were up by nearly 6%, underscoring the volatile nature of food prices.
Retailers have been leaning into consumer concerns that grocery prices are primed to go up. For example, Meijer announced Monday that it would temporarily drop prices on more than 70 private label food items.
'Meijer understands customers are looking for value now more than ever before,' Don Sanderson, the Midwestern grocer's chief merchandising and marketing officer, said in a statement.
Recommended Reading
Tariff uncertainty poses risks for grocers, experts say
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Associated Press
21 minutes ago
- Associated Press
Inflation data threatened by government hiring freeze as tariffs loom
WASHINGTON (AP) — The Labor Department has cut back on the inflation data it collects because of the Trump administration's government hiring freeze, raising concerns among economists about the quality of the inflation figures just as they are being closely watched for the impact of tariffs. The department's Bureau of Labor Statistics, which produces the monthly consumer price index, the most closely watched inflation measure, said Wednesday that it is 'reducing sample in areas across the country' and stopped collecting price data entirely in April in Lincoln, Nebraska, and Provo, Utah. It also said it has stopped collecting data this month in Buffalo, New York. In an email that the BLS sent to economists, viewed by The Associated Press, the agency said that it 'temporarily reduced the number of outlets and quotes it attempted to collect due to a staffing shortage' in April. The reduced data collection 'will be kept in place until the hiring freeze is lifted.' President Donald Trump froze federal hiring on his first day in office and extended the freeze in April until late July, suggesting future inflation reports will also involve less data collection. The cutbacks have intensified worries among economists that government spending cuts could degrade the federal government's ability to compile key economic data on employment, prices, and the broader economy. The BLS also said last month that it will no longer collect wholesale prices in about 350 categories for its Producer Price Index, a measure of price changes before they reach the consumer. The cutbacks are also occurring at a time of heightened uncertainty about the economy and the impact of Trump's sweeping tariffs on hiring, growth and inflation. 'The PPI is cutting hundreds of indexes from production, and the CPI is now being constructed with less data,' Omair Sharif, chief economist at the consulting firm Inflation Insights, said in an email. 'That alone is worrying given that we're heading into the teeth of the tariff impact on prices.' Earlier this year, the Trump administration disbanded several advisory committees that worked with BLS and other statistical agencies on fine-tuning its data-gathering. The BLS said that the cutbacks 'have minimal impact' on the overall inflation data, but 'they may increase the volatility' of the reported prices of specific items. Alan Detmeister, an economist at UBS, an investment bank, said the cutbacks likely had little impact on April's inflation figures. But 'if these types of cuts continue, they will degrade the reliability and efficacy of these statistical agencies,' he said.
New York Post
an hour ago
- New York Post
Trump hiring freeze hurting quality of inflation data collection: report
Federal government staffing shortages from Trump administration hiring freezes have forced the Labor Department's economic statistics arm to curtail the breadth of its data collection for one of the main measures of US inflation, the Wall Street Journal reported Wednesday. The paper said the Bureau of Labor Statistics beginning in April reduced the number of businesses at which it checks prices for the benchmark Consumer Price Index report, citing the hiring freeze that President Trump imposed on his first day back in office, Jan. 20. 'The CPI temporarily reduced the number of outlets and quotes it attempted to collect due to a staffing shortage in certain CPI cities,' beginning in April, a BLS email to private economists and shared with the Journal read. 'These procedures will be kept in place until the hiring freeze is lifted, and additional staff can be hired and trained.' Advertisement CPI is among the most closely watched economic datasets published by the US government, relied upon by economists, investors and policymakers for near-real-time estimates of the state of inflation. REUTERS The Labor Department and BLS did not immediately respond to requests for comment from Reuters. CPI is among the most closely watched economic datasets published by the US government, relied upon by economists, investors and policymakers for near-real-time estimates of the state of inflation. Advertisement The Bureau of Labor Statistics beginning in April reduced the number of businesses at which it checks prices for the benchmark Consumer Price Index report, citing the hiring freeze that President Trump imposed. AP It provides a monthly snapshot of changes both to prices overall and among hundreds of separate products and services ranging from eggs to eyeglasses and airline tickets to automobiles.
Miami Herald
2 hours ago
- Miami Herald
Amazon Fresh doubles down on discounts
Amazon Fresh seems to have seized on a simple strategy to bring shoppers into its supermarkets: Charge less than the competition for a broad assortment of foods - and make sure customers know about it. During visits to three of the supermarket chain's locations on the East and West coasts in May, Grocery Dive journalists observed an abundance of bright red low-price signs inside and outside stores. They also found that prices for a number of common, brand name items were sharply lower than what nearby stores charged for identical items. For example, an Amazon Fresh store in Bellevue, Washington, charged $3.49 for an 8-ounce tub of Philadelphia cream cheese when a reporter visited on May 27, while a Kroger-owned QFC across the street asked $4.99 for the same product. The same Amazon Fresh store charged $6.99 for a 12-pack of Pepsi cans, compared with $10.99 for that size package of the soft drink at QFC. Produce prices at Amazon Fresh were also strikingly low. The grocer's store in Alexandria, Virginia, beckoned customers on May 29 with 1-pound packages of strawberries for $1.89 each, while a Giant Food store a five-minute drive away charged $3.79 for the same size package of the popular fruit (or $4.99 for shoppers who don't belong to the Ahold Delhaize banner's loyalty program). The Amazon Fresh location in Gaithersburg, Maryland, was also replete in May with items sporting prices that were below what nearby competitors charged. Amazon Fresh has gone all out to ensure that shoppers know they will find bargains in its stores. The chain's locations that Grocery Dive visited are decked out with signs proclaiming, "Low prices. Every aisle. Every day." Other signs remind shoppers that the bargains are "here to stay." Signs outside point out that shoppers do not need to belong to Amazon Prime to take advantage of the savings - although people can return Amazon packages during their visit. The intense focus on low prices at Amazon Fresh stores of late underscores Amazon's pricing heft. It also reflects an evolving quest by the company to carve a niche for itself in the crowded traditional supermarket space. "As part of our focus on offering customers low, competitive prices to save money every day, we work to meet or beat competitor prices across the vast selection of products in our stores," Amazon spokesperson Molly McWhinnie said in an emailed statement. Nearly three years after opening its first Amazon Fresh store in August 2020, Amazon paused the chain's expansion after concluding that its initial approach was not resonating with shoppers. Less than a year later, it unveiled a new store design with updated signage and a larger array of products. While Amazon formerly used its Fresh stores as showcases for its Just Walk Out automated checkout technology, it has since taken that gear out and shifted its focus to its Dash Cart smart carts. Copyright 2025 Industry Dive. All rights reserved.
