There is encouraging news coming from the Consumer Price Index. There is data showing that food-at-home prices in October were up 12.4% while the inflation rate came in at 7.7%. Food-at-home prices increased 0.4% in October, which was the slowest increase since December 2021.
August proved to be the highest percentage hike for food-at-home increases which was a 13.5% year-over-year increase; the highest seen in 43 years. In June, the Consumer Price Index went up to 9.1%, the highest increase since 1981. Cereals and baked goods were up 15.9% in October and dairy products were coming in close at 15.5%. Vegetables and Fruits saw an increase as well at 9.3% and meats, poultry, fish and eggs showing a 8% inflation increase.
The grocery industry is aware that months of sharp and drastic increases has lasting impacts on consumers and are working hard and taking steps to overcome the ever-increasing price challenges consumers are faced with. The FMI Vice President of Tax, Trade, Sustainability and Policy Development Andy Harig said “The cost of consumer goods continues to rise, adding pressure on budgets across the country. Grocery stores – and the entire food industry – are doing all they can to ensure Americans have options to stay within their grocery budget and remain committed to working with their customers to help mitigate the impacts of inflation,”.
The stock market took the October inflation decrease as a good sign that inflation is decreasing, with the S&P 500 index hitting 4%. While retailers and consumers are still facing high everyday prices, the data coming from October continues to be encouraging and hopefully add additional confidence to consumers as they hit retail this holiday season.