Prices at grocery stores and restaurants increased by 0.2 percent last month compared to April after two consecutive stagnant months. The change comes despite overall prices rising at the slowest pace in over two years, according to data from the Labor Department, reports The New York Times.
Monthly, food prices are rising slightly slower than they were earlier in the year, however, costs remain higher than pre-pandemic levels. In the last year, food prices increased by 6.7 percent, down from 7.7 percent in April.
The price of groceries rose by 0.1 percent in May compared to the month before. Yet, in April, the price decreased by 0.2 percent compared to March. At restaurants, the prices increased by 0.5 percent in May, compared to the 0.4 percent jump in April.
Egg prices continued to decline, falling 13.8 percent last month. This helped to level food inflation. Similarly, the indexes for meats, poultry, and fish all fell over the same period. On the other hand, fruit and vegetable rose 1.3 percent in May after decreasing in April by 0.5 percent.
According to The New York Times, economists indicate that the overall food prices could show signs of moderating as labor pressures lift, and wage growth in the industry slows, thereby loosening companies’ budgets slightly. Full Story (Subscription required)
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