Good news for households. Grocery prices fell in July, marking the first decline in prices since soaring in spring as a result of the coronavirus pandemic, according to the Consumer Price Index.
The price consumers paid for groceries fell 1.1% in July compared to June data which was released Wednesday by the U.S. Department of Labor.
July’s prices declines are a move in the right direction for consumers, who are still feeling the effects of a pandemic led grocery spike of 2.6% in April, the largest increase in more than four decades.
Although there’s been no shortage in food, supply chain failures have tightened the supply of items reaching stores, which had driven up prices.
The decline was mostly attributable to a significant decrease in the cost of beef, which declined by 8.2%. But not all meat types declined. In fact, hot dogs were more expensive. Prices jumped 2.4% last month, perhaps in part because of the Fourth of July holiday.
The decrease led to a decline in the price index for all food (groceries and restaurants), which fell 0.4%, the first decline since April 2019.
Although these declines will help consumers in the wallet, prices remain elevated compared to last year. Prices are up 4.6% YOY, well above inflation.