Overview
- Food-at-home prices rose 0.7% in April and 2.9% over 12 months, the largest monthly gain since 2022, according to Labor Department data.
- Tomatoes, coffee, beef, frozen seafood, and fresh vegetables saw some of the biggest year-over-year increases, while eggs, butter, and cheese got cheaper.
- Economists point to diesel costs pushing up refrigerated trucking—the cold chain for perishables—along with category strains such as a small cattle herd and weather and tariff hits to tomatoes.
- Household budgets are being squeezed as gas prices are up 28.4% over the year, and many shoppers are turning to store brands, coupon and loyalty apps, and cheaper proteins like chicken and pork.
- Analysts say higher fertilizer costs tied to the Iran conflict could lift grocery prices with a lag, potentially adding pressure next year.