US food inflation saw the smallest increase in December in 21 months as prices for bacon, flour and fresh fruit fell despite the cost of eggs soaring.
(Bloomberg) — US food inflation saw the smallest increase in December in 21 months as prices for bacon, flour and fresh fruit fell despite the cost of eggs soaring.
Prices for food rose by 0.3% last month from November, Labor Department data Thursday showed. The slight cooling comes as cheaper energy costs prompted the first monthly decline in 2 1/2 years in the overall consumer price index, adding to evidence that inflation has peaked. Still, food prices are up 10% from a year ago.
The cost of bacon tumbled last month by the most since 2019, while flour saw the steepest decline since 2020.Â
Egg prices were a notable exception in the opposite direction, soaring 11% amid the worst-ever outbreak of avian influenza that has killed millions of chickens. Lettuce and tomatoes also rose sharply, and alcoholic beverages at home gained by the most since 1991.
The mixed bag means consumers remain under pressure from elevated food prices even as other parts of the economy were easing more quickly.
–With assistance from Dominic Carey, Reade Pickert and Simon Casey.
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