Consumer Price Index: Did Inflation Increase the Price of Bacon, Eggs & Bread in June?
Inflation data was worse than expected in June, with the Bureau of Labor Statistics’ (BLS) Consumer Price Index (CPI) increasing 9.1% for the 12 months ending June, a new four-decade high. The increase was broad-based, and food was one of the largest contributors. A few breakfast staples — such as bacon — saw their price decrease in the month, however.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 1.3% in June on a seasonally adjusted basis after rising 1% in May, the BLS said.
This was higher than economists’ expectations, as they expected the CPI — which measures what consumers pay for goods and services including clothes, groceries, restaurant meals, recreational activities and vehicles — to have increased 8.8% in June according to economists surveyed by The Wall Street Journal.
The food index increased 1% in June, bringing the increase to 10.4% for the 12-months ending June, the largest 12-month increase since the period ending February 1981, the BLS data shows. This is also higher than the overall inflation rate.
The index for bacon decreased 1.1% for the month but is still up 10.8% for the year. The price of eggs increased slightly, 0.33% in June, but is up a staggering 33.1% for the year. As for bread, the index rose 1.6% in June, representing a 10.8% increase in the 12-months period.
The index for food at home also rose 1% percent. The BLS said that five of the six major grocery store food group indexes rose in June.
Food items that became pricier include cereals and bakery products. They increased 2.1% in June, with the index for flour rising 5.3% The dairy and related products index rose 1.7%, while the fruits and vegetables index increased 0.7%.
The only major grocery group index to decline in June was the index for meats, poultry, fish, and eggs which fell 0.4% over the month as the indexes for beef and pork declined, the BLS noted.
Jeffrey Rosenkranz, portfolio manager, Shelton Capital Management, told GOBankingRates that meat, poultry, fish and eggs aren’t the problem right now, nor are fruits and vegetables.
“Food away from home — at restaurants and schools, was a driver, possibly due to the labor component,” he said. “Cereals and grains were also contributors, likely as a result of continuing disruptions from the Russian invasion of Ukraine. These should moderate over the coming months as wheat and corn prices have rolled over recently. To top it off, ice cream prices spiked as well, just in time for summer.”
Indeed, ice cream prices increased 3.1% for the month and 12.5% for the year.
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