Though retail prices for fresh produce were down compared with a year ago, the inflation rate for all consumer prices ticked higher in December, reports the U.S. Department of Commerce.
Over the last 12 months, the all-items index increased 3.4% before seasonal adjustment, according to the report. That 3.4% year-over-year rise in December was up from the 3.1% all-items inflation number in November.
The report also said the cost index for shelter continued to rise in December, contributing over half of the monthly all-items increase. The energy index rose 0.4% from November to December, as increases in the electricity index and the gasoline index more than offset a decrease in the natural gas index.
The food index increased 0.2% in December, as it did in November. The index for food at home (groceries) increased 0.1% over the month, and the index for food away from home (restaurant) rose 0.3%.
Four of the six major grocery store food group indexes increased over the month. The index for meats, poultry, fish and eggs rose 0.5% in December, led by an 8.9% increase in the index for eggs. The index for dairy and related products rose 0.3% in December. The cereals and bakery products index declined 0.3% over the month, with the breakfast cereal index declining 2.4%, the largest decrease in that index since January 2007.
The index for fruits and vegetables (fresh and processed) decreased 0.1% in December.
The restaurant index rose 0.3% in December, after rising 0.4% in November. The index for full-service meals rose 0.3%, and the index for limited-service meals increased 0.4% over the month.
ANNUAL INFLATION
The consumer inflation report said the grocery food index rose 1.3% over the last 12 months, however, retail prices for fresh produce were down 0.5% compared with a year ago.
Here are the price changes for produce items reported by the Commerce Department:
- Fresh fruits — up 3.6%.
- Apples — down 5.9%.
- Bananas — up 1%.
- Citrus — up 5.4%.
- Oranges — up 5.3%.
- Fresh vegetables: — down 4.8%.
- Potatoes — down 2.8%.
- Lettuce — down 16.7%.
- Tomatoes — down 7.2%.
EDITOR’S TAKE:
Not exactly the news anyone wanted to hear. The Federal Reserve was looking for a lower number, one closer to their 2% target. The current administration was also hoping for better news. And, of course, consumers keep praying for relief. Overall inflation during the past three years is in excess of 20%. Food, housing and energy during the same period are in excess of that. Unfortunately, wages have not kept pace in most instances and people are often faced with difficult spending decisions. Lower production of beef, coupled with the most recent outbreak of bird flu, is likely to send prices for those items higher in the year ahead. The good news, farmers/ranchers still have money, as 2023 saw the second highest farm income on record. They are looking for new trucks. Be sure to put your inventory on AgTruckTrader.com to let them know what you have to offer and how to contact you.
