Wholesale Food And Menu Prices Rise Again

After falling for six consecutive months, wholesale food prices rose for the second month in June, according to the latest data from the U.S. Bureau of Labor Statistics Producer Price Index. Food at the final demand stage rose 0.6% after a 0.8% gain in May. Foods and feedstuffs also rose at the intermediate demand stage, with processed foods jumping 1.4% and unprocessed foodstuffs up 1%. The BLS mentioned eggs prices as a contributor to the upward move in final demand stage food prices, but also noted a 6% drop in prices for fresh and dry vegetables.

The overall PPI rose 0.4 seasonally adjusted with energy prices primarily pushing the index higher. The overall index for the last 12 months remained in negative territory for the fifth consecutive month.

On the consumer side, the upward move in wholesale food prices helped drive a 0.4% gain for the food-at-home component of the Consumer Price Index. It was the first upward move in grocery-store prices in four months. Menu prices rose 0.2% for the fourth consecutive month. For the past 12 months, menu prices have risen 3%, while grocery store prices are up only 1%.

The BLS said egg prices rose 18.3% in June, driving three-quarters of the increase in the food-at-home index. Also higher in June were meats, poultry, fish, cereals, bakery products and non-alcoholic beverages.