Arlington, VA - Today, FMI - The Food Industry Association Vice President, Tax, Trade, Sustainability and Policy Development Andy Harig issued the following statement on the July 2024 Consumer Price Index (CPI).
“Today’s CPI numbers show that the pace of year-over-year inflation continues to moderate, with food prices remaining a bright spot in the data relative to other sectors like shelter and transportation services. Indeed, year-over-year food-at-home inflation at 1.1% remains below the 2.9% increase in overall inflation and demonstrates that eating at home continues to be an economical way for families to manage their food budgets.
“The U.S. Department of Agriculture’s (USDA) Food Price Outlook released last month predicted a 1% increase in food-at-home prices for the remainder of 2024 and just 0.7% for 2025. This should also give consumers additional confidence that grocery inflation will continue to head in the right direction in the coming months, barring any unforeseen shocks.
“Importantly, even though certain food supply chain inputs like energy rose significantly according to the July Producer Price Index (PPI), the food manufacturing PPI increased less than 0.1%. This suggests that overall supply chain cost pressures are continuing to ease, which also bodes well for food prices in the short and medium term.
“Taken together, the economic outlook for food prices remains positive. While it is true that black swan events can occur, indicators are pointing to continued progress on addressing food price inflation – which is welcome news for both the food industry and consumer alike.”
For Media:
FMI Blog: A Deep Dive into Summer Food Prices