US grocery prices jumped 0.5% last month, with some staple items seeing notable increases. The rate of inflation has slowed since its peak in 2022, but January saw a significant jump from the same period last year.
Bacon prices rose 4.1%, frozen juices increased by 5.3%, and fresh biscuits, rolls, and muffins saw a 1.8% hike. However, eggs experienced the largest monthly price increase, jumping 15.2% due to disruptions in egg production caused by the H5N1 bird flu.
According to food economics professor David Ortega, breakfast items tend to be most affected by inflation, but there are still pressures across various food categories. On the other hand, some items have seen decreases, including:
* Breakfast cereal (-3.3%)
* Bread (0.7% or 0.9% for white bread)
* Fresh coffee cakes and doughnuts (-0.5%)
* Breakfast sausage (-0.3%)
* Roasted coffee (-0.3%)
Other food prices that rose in January include instant coffee, margarine, canned fruits, beef steaks, and roasted coffee.
Despite the slowing rate of inflation, Ortega notes that food prices remain significantly higher than four years ago. The pace of price increases is a concern, but it’s too early to predict future trends. Factors contributing to recent price hikes include bird flu, climate change, and potential policy changes.
Michael Swanson, Wells Fargo’s chief agricultural economist, points to beef prices as another area to watch. Beef prices have been increasing since 2022 droughts affected ranchers, with prices up 5.5% from the same period last year. However, if demand ebbs, prices could drop.
Source: https://eu.usatoday.com/story/money/food/2025/02/12/breakfast-food-inflation-egg-prices/78458663007