Food Prices Lower in March, but Still 8.5% Higher Than a Year Ago

Lower grocery prices highlighted the March Consumer Price Index, but the annual food inflation rate remains well above the all-items index.

All consumer prices were up 5% compared with last March, the U.S. Bureau of Labor Statistics reported, the smallest 12-month measure since May 2021. Higher prices for shelter offset declines in energy, the report said.

Meanwhile, the 12-month food inflation measure was pegged at 8.5% in March. Grocery prices rose 8.4% over the past 12 months, the report said.

The index for cereals and bakery products rose 13.6% over the 12-month period ending in March, contrasted with just a 2.5% annual gain for fruits and vegetables.

Restaurant food inflation was measured at 8.8% over the past year in March, with full-service meals up 8% and limited-service meals up 7.9%.

Ups and Downs

The food index was unchanged in March compared with February, with the food at home (grocery) index falling 0.3%. That decline was the first for that index since September 2020, according to the report.

Three of the six major grocery store food group indexes decreased from February to March. The index for meats, poultry, fish and eggs decreased by 1.4% in March as the index for eggs fell by 10.9%. The fruits and vegetables index declined 1.3% over the month, and the dairy and related products index decreased 0.1%, the report said.

The food away from home (restaurant) index rose 0.6% in March, the same as the previous two months, according to the report.

The inflation rate for full-service meals increased by 0.7% from February to March, and the index for limited-service meals increased by 0.5%, the report said.