Grocery prices rise for fifth month

Grocery prices have increased for the fifth month this year, with a 0.2% rise in June, according to the Bureau of Labor Statistics. This increase is slightly higher than the 0.1% rise in May. The largest increase was in April, at 0.7%, while March was the only month where food-at-home prices fell, at 0.2%.

Dairy and related products saw the biggest increase in June, at 1.2%. The meats, poultry, fish, and eggs index rose 0.6%, and the eggs index climbed 4.3%. The index for other food at home increased 0.5% in June, and the cereals and bakery products index was up 0.3%.

Four of the six major grocery store food group indexes increased in June. The only two categories that dropped in price were the index for nonalcoholic beverages, down 1.5%, and the fruits and vegetables index, which decreased 0.2% over the month. The index for coffee decreased 2%.

Year over year, the index for food at home rose 2.7%. All six categories increased, led by the fruits and vegetables index, up 5.3%. The nonalcoholic beverages index rose 2.9% year over year, and the index for meats, poultry, fish, and eggs increased 2.6%.

Analysts warn that a super El Niño developing in the Pacific Ocean may not provide relief for food prices soon. The World Meteorological Organization said that current El Niño weather conditions would strengthen rapidly over the coming months, bringing “heatwaves, droughts, heavy rainfall and other extreme weather events.”

The National Oceanic and Atmospheric Administration said there’s an 81% chance of a “very strong” El Niño between October and December. A Goldman Sachs analysis says the El Niño could produce a rise in global food commodity prices, an increase that might not fully materialize until the second half of 2028.

These weather events can have a significant impact on household costs and food production. As the global food system is complex and interconnected, events like El Niño can affect not just local prices but also global commodity prices.

The cereals and bakery products index and the index for other food at home both increased year over year, and the index for dairy and related products rose.

The data from the Bureau of Labor Statistics provides insight into the current state of grocery prices.

About the AuthorSenior editor at Supermarket NewsBill Wilson is the senior editor at Supermarket News, covering all things grocery and retail. He has been a journalist in the B2B industry for 25 years. He has received two Robert F. Boger awards for his work as a journalist in the infrastructure industry and has over 25 editorial awards total in his career. He graduated cum laude from Southern Illinois University at Carbondale with a major in broadcast communications.