Inflation became deflation in June.
The Bureau of Labor Statistics reported the Consumer Price Index for All Urban Consumers in June declined 0.1% on a seasonally adjusted basis, after being unchanged in May.
Over the last 12 months, the all-items index increased 3% before seasonal adjustment.
The energy index increased 1% for the 12 months ending June. The food index increased 2.2% over the last year, CPI numbers revealed.
The report said the food at home (retail) index rose 1.1% over the last 12 months, while the index for food away from home (restaurant) rose 4.1%. The report said the inflation index for limited-service meals rose 4.3% over the last 12 months and the index for full-service meals rose 3.9%.
Tame retail prices in June
The price index for all food increased 0.2% in June. The food away from home index rose 0.4% over the month, while the food at-home index increased 0.1%, according to the report.
The index for full-service meals rose 0.6% in June, and the index for limited service meals increased 0.2% over the month.
The index for fruits and vegetables fell 0.5% in June, after being unchanged in May. Over the past year, the retail fruits and vegetables index fell 0.5%, the report said.
“Today’s CPI numbers once again demonstrate that eating at home is the most cost-effective strategy for American consumers looking to manage their food budgets,” Andy Harig, vice president of tax, trade, sustainability and policy development for FMI — The Food Industry Association, said in a statement. “Notably, year-over-year food-at-home inflation remains well below food-away-from-home at 1.1% compared to 4.1%, And this is not a new phenomenon − the latest data from the U.S. Department of Agriculture (USDA) demonstrates that this has been the case for the last decade.”
Harig said retail food prices continue to run well below overall inflation rates.
“Despite ongoing increases in operational costs to food retailers and suppliers, the food industry remains committed to making investments in their businesses and the supply chain to provide value to customers,” Harig said in the release. “Among these efforts are increased private brand and local product offerings as well as the deployment of new technologies to enhance and personalize the shopping experience.”
