Food prices finally fall with one big exception


Now that inflation has started to subside, the cash register at the grocery store is finally getting a little easier, unless you need baby formula.

Inflation slowed for the 10th straight month, to 4.9% from 5% in April, according to consumer price index data released this week. Even better for shoppers, while grocery prices fell for the second month in a row, not all goods fell in price, and some even rose further, most notably infant formula.

Food prices rose sharply, rising 7.1% year-on-year, but improved from August when food inflation hit 13.5% year-on-year, the highest since 1979.

Parents with young children may not see their grocery bills go down much. Baby food and formula rose 4.3% month-on-month, the biggest one-month increase since 1998 for BLS data. Manufacturing costs are rising as the FDA plans to monitor infant formula production more closely to prevent a recurrence of shortages in 2022.

Murray Kessler, CEO of store-brand infant formula maker Perrigo, said on an earnings call this week that “these actions will adversely affect supply and significantly increase the cost of producing infant formula. ‘ said. “The significant costs associated with these new regulatory requirements will be offset by price increases.”

Prices for eggs (not shown in the chart) fell 1.5% in the same month, following a sharp 10.5% drop in March, not only profiting but also hurting food shoppers after a bird flu epidemic drove prices up last year. gave me a break. -Made by an egg company. Despite the recent decline, egg prices were 21.4% higher than last year.

Other breakfast foods fell the most, with oranges, bacon and milk all dropping more than 2%.



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