Food Prices Rise At Both Wholesale And Consumer Levels

Both the Producer Price Index and the Consumer Price Index fell in June, according to the Bureau of Labor Statistics, as recent drops in energy prices pushed down the measures of inflation. But after falling last month at the producer level, wholesale food prices rose again.

While the overall PPI fell 0.4% in June, the index for “finished” wholesale foods rose 0.6%, driven primarily by an increase in prices for fruits and vegetables. Food prices at the intermediate and crude levels also rose. Food prices at the finished level have risen nine of the past 10 months, and stand 7.4% higher than June last year. The overall PPI for finished goods is running 7% ahead of a year ago.

On the consumer side, overall energy prices fell 4.4% led by a 6.8% drop in gas prices. Despite the decrease, gas prices now stand 35.6% higher than a year ago, on a seasonally unadjusted basis.

Food-at-home prices rose 0.2%, while the price increase for food-away-from home was 0.3%. For the past 12 months, food-at-home prices have risen 4.7% while menu prices have experienced a more modest 2.3% increase.