It’s still getting pricey
Everybody was touting the fact that inflation isn’t as high as some thought it would be in December. But I have some bad news for the administration. The aggregate number doesn’t mean much when this is happening. Just ask Joe Biden:
Grocery prices rose at the fastest pace in three years, keeping pressure on household budgets even as overall inflation held steady in December.
The jump in costs highlights the challenge for the White House in the lead-up to midterm elections. Broad inflation relief is little consolation for Americans if they aren’t seeing it reflected in grocery bills.
Grocery prices (or “food at home,” as the Bureau of Labor Statistics calls it) rose by 0.7% in December, the largest monthly gain since the peak inflation period in August 2022.
- Food inflation was evident at restaurants, too: Costs for dining out (or “food away from home”) rose by a similar amount, the largest monthly gain in three years.
Grocery prices were up roughly 2.4% in December compared to the prior year.
- But that masks double-digit price increases for a slew of household staples over the past 12 months, including coffee (+20%), beef (+16%) and candy (+10%).
None of that matters, not really. Because:
There is some relief elsewhere in the grocery store: Egg prices, for instance, are down more than 20% from a year ago, with an 8% decline in December alone.
It’s the hottest country in the world! And omelettes have never been cheaper!