According to the Bureau of Labor Statistics, from April to May, the prices for all items increased by 0.4%.
For the month of May, the CPI report said the index for shelter was the largest contributor to the monthly all-items increase, followed by an increase in the index for used cars and trucks.
The food index increased 0.2% after being unchanged in the previous two months. The index for grocery food rose 0.1%, while the index for restaurant food rose 0.5%.
Three of the six major grocery store food group indexes. The index for fruits and vegetables rose 1.3%, following a 0.5% decrease in April.
Food Inflation
Year-over-year food inflation in May was higher than the overall CPI index.
The grocery food price index rose 5.8% over the last 12 months. The index for restaurant food rose 8.3% over the last year. The index for full-service meals rose 6.8% over the last 12 months, and the index for limited-service meals rose 8% over the same period.
Inflation for fresh fruits and vegetables rose just 0.6% from May 2022 to May 2023, according to the CPI report. That compares with 10.7% for cereals and bakery and 4.6% for dairy products.
Here is a list of food items, with the May 2023 inflation rate compared with May 2022 (seasonally unadjusted):
- Cereals and bakery products: 10.7%.
- Meats, poultry, fish, and eggs: 0.3%.
- Dairy and related products: 4.6%.
- Fresh fruits and vegetables: 0.6%.
- Fresh vegetables: 2%.
- Fresh fruit: -0.5%.
- Apples: 7.7%.
- Citrus: -5.3%.
- Lettuce: 9.4%.
- Potatoes: 7.1%.
- Tomatoes: -3.5%.
- Bananas: 1.3%.
EDITOR’S TAKE:
What is really curious is how the government attempts to “spin” this news. Many in the media suggest that “inflation has slowed”. Ok, the rate of increase may have “slowed” a bit, but we still have inflation! And as most would acknowledge, inflation is a cruel tax, especially on the middle class and poor people. It is even harder to swallow for anyone on a fixed income. This article clearly demonstrates, in my mind, why consumers have pulled in the reigns on purchases like homes, cars and trucks or virtually many discretionary items. That said, let me beat the drum one more time for farmers/ranchers being great prospective customers. They are doing very well; they are very credit-worthy, with plenty of equity relative to debt; and they purchase a lot of trucks every single year! That’s why we created programs like AgPack® and AgTruckTrader.com to help you appeal to those customers and provide the visibility you need.
