Inflation: Grocery Prices Jumped 12.4% Compared to October Last Year

Inflation in the U.S. eased a bit, up 7.7% year-over-year, however the cost of groceries is up by 12.4% compared to a year ago.

Consumers saw the lowest jump since December of 2021 on a month-to-month basis for groceries, up 0.4%, according to the Bureau of Labor Statistics’ (BLS) October Consumer Price Index (CPI).

BLS economist Steve Reed emphasized to Yahoo Finance this can be seen as a “deceleration in grocery prices, not a decrease.”

Compared to prior months, when Americans saw “virtually everything rising,” Reed said the report showed “more of a mixed bag.”

Foods with the highest price jumps on a monthly basis include eggs (up 10.1%), fats and oils (up 2.1%), lettuce (up 3.3%), and flour and prepared flour mixes (up 2.0), to name a few.

Items that saw a decline month-over-month include fresh fruits (down 2.4%) and fresh vegetables (down 0.5%). The meats, poultry and fish category was down 0.1%, with pork driving that lower, down 0.6%, and poultry, down 1.1%.

In a recent study, Wells Fargo noted that chicken and pork are some of the most economical options this Thanksgiving.

“If you’re looking for protein alternatives, definitely, chicken and pork products are going to be maybe a little bit less expensive than some of the other other proteins out there,” Brad Rubin, Wells Fargo Food and Agribusiness Sector Manager of Specialty Crops, told Yahoo Finance. “If you’re looking for protein alternatives, definitely, chicken and pork products are going to be maybe a little bit less expensive than some of the other other proteins out there,” he said.

While the BLS is not in the business of forecasting, Reed note that looking forward, the “question is whether this sort of downward trend and the 12 month change continues.”

One key aspect to keep an eye, Reed said, is energy, up 1.8% month-over-month and 17.6% year-over-year.

“Energy prices affect the prices of production” he noted. “Especially transport.”

Gasoline prices increasing by 8% from September and 17.5% from a year ago. Meanwhile, natural gas prices were down sharply in October and electricity prices remained mostly flat, increasing by 0.1% from a month prior.

Reed added, “If energy prices moderate, that’ll probably filter into some other goods as well.”