Grocery prices fell in July but the cost of these food staples is still climbing
Beef, tomatoes and coffee are among the items seeing steep price increases.
Grocery prices fell slightly in July, according to the latest government data, cooling off from a surge in the spring, when they suffered their largest monthly spike in four years.
Costs ticked lower last month for cheese, salad dressing and candy, among other foods.
Overall, grocery prices dropped 0.1% on a seasonally adjusted basis last month, leaving them 2.7% higher than a year earlier, U.S. Bureau of Labor Statistics (BLS) data showed.
That year-over-year figure came in lower than the overall inflation rate of 3.4%, making grocery prices a bright spot in the government report. Still, grocery price hikes remain nearly a percentage point higher than the Federal Reserve's target rate of 2%.
The relief for grocery prices included some notable exceptions. Increases remained elevated for some household staples like fruits and vegetables, beef, coffee, milk and rice.
The previous jump in food prices stemmed in part from a historic oil shock set off by the Iran war, which pushed up diesel costs. Higher fuel costs for trucks and ships meant price hikes in grocery aisles as the increased costs were passed down the supply chain.
Diesel prices hit their most recent peak in April before easing in June. Since then, prices have swung in response to on-again, off-again Iran war attacks but they have stayed below levels reached earlier in the conflict.
Perishable foods like produce and meats are particularly sensitive to a rise in diesel costs, since their short shelf life leaves them especially vulnerable to sudden increases in supply-chain costs, some analysts previously told ABC News.
Prices for fresh fruits and vegetables jumped 5.5% in July compared to a year earlier, the BLS report showed, putting them well above the overall inflation rate.
Apple prices climbed 11.1% in July from a year prior, while tomatoes soared 12.8%, according to the BLS. Some good news could be found for tomato prices, which fell 3.9% from June to July, suggesting a trend in the right direction.
Grocers in the U.S. import a large share of their tomatoes from Mexico, but weather-related damage in that country has slashed tomato output. A resulting dearth of supply has failed to keep up with demand, pushing up prices. At the same time, a tariff on tomatoes from Mexico took effect last year, ratcheting up costs for foreign suppliers.
Beef and veal prices, meanwhile, soared 9.4% in July compared to a year earlier, and meat prices as a whole jumped 5.4% over that period, the BLS report said. Coffee prices also climbed over that period, leaping more than 10%.
Drought-related shortages have helped drive the rise in coffee and beef prices. Tariffs on the two products also increased their prices, but the Trump administration removed those levies last fall.
By contrast, some food items have undergone a significant reduction in price, according to the BLS. Egg prices plummeted more than 25.7% over the year ending in July, indicating continued recovery from a shortage caused by an outbreak of bird flu.
Lettuce prices also dropped a staggering 15.1% in July from the previous month as some consumers avoided it after a cyclosporiasis outbreak linked to shredded iceberg lettuce. Over the past year, however, lettuce prices have climbed more than twice as quickly as the overall inflation rate.
Related Topics
Popular Reads
ABC News Live