Food Prices Were Flat in April, Report Shows

Food costs have been flat for a second straight month in April, aid for a lot of Americans who’ve confronted larger prices on the grocery retailer in latest months.

That is an enormous enchancment from February, when costs rose 0.4 p.c over the month.

Prices for meals at dwelling fell 0.2 p.c in April in contrast with the month earlier than. Prices for meals at eating places continued to choose up, rising 0.4 p.c over the month, a slight decline from 0.6 p.c in March.

Despite the aid in meals worth progress, prices are nonetheless a lot larger than they have been earlier than the pandemic. Overall, meals costs have climbed 7.7 p.c during the last 12 months.

Prices for fruit and veggies decreased 0.5 p.c over the month, and the index for meats, poultry, fish, and eggs additionally declined 0.3 p.c. Prices for milk fell 2 p.c, the biggest decline since February 2015. Egg costs, which spiked after an outbreak of avian influenza and the price of gasoline, feed and packaging rose, fell 1.5 p.c after a ten.9 p.c decline in March.

Prices for cereals and bakery merchandise rose 0.2 p.c, down from 0.6 p.c the month earlier than.

Food costs began capturing up about two years in the past as the price of labor, transportation and uncooked supplies picked up. Other components, corresponding to the upper value of selling and packaging meals merchandise, have additionally resulted in firms passing alongside these will increase to customers. Weather-related occasions, corresponding to excessive droughts within the Western United States, have diminished crop yields and pushed up provide prices.

Economists stated meals costs may very well be beginning to average as labor pressures eased and wage progress throughout the business slowed in latest months. Recent declines in gasoline costs have additionally helped deliver down transportation prices.

The costs that customers pay for meals at eating places are usually slower to alter as a result of extra labor prices are concerned.

“Americans have had to face significantly higher costs for basic necessities,” stated Sarah House, a senior economist at Wells Fargo. “The fact that you’re seeing some easing here is really important for consumers.”