Arlington, VA – Today, FMI - The Food Industry Association Vice President, Tax, Trade, Sustainability and Policy Development Andy Harig issued the following statement on the January 2024 Consumer Price Index (CPI) numbers:
"The first CPI reading of 2024 offers consumers a reason for cautious optimism: the overall inflation rate continues to cool, falling to 3.1%, down from 3.4% in December. The price of food-at-home ticked up slightly in January but stood at 1.2% on an annual basis. It is clear that inflation is headed in the right direction even as some bumps in the road may continue to pop up.
“There is reason to be hopeful that this good news will continue throughout the year ahead and food prices will continue to decelerate. According to the U.S. Department of Agriculture (USDA), food-at-home inflation is projected to decrease by 0.4% in 2024.
“Food prices can be volatile. External factors – like rising energy prices, persistent labor and transportation shortages, extreme weather and global conflict – have caused an increase in food prices over the last few years. But taking a broader view, it's also important to note how uniquely challenging this period has been. In fact, average grocery prices have remained generally consistent – increasing within a modest range of 1% to 4% – since 2003. This stability is largely due to the intense competition within the food retail sector, which operates on a slim 2.3% net profit margin.
“Amidst the ongoing political discourse around inflation, FMI encourages a national dialogue on food prices; but it must be driven by data and an accurate picture of market conditions. We must also recognize how grocery shoppers are redefining value that includes their desires to consider quality, convenience, experience and relevance among the products that they buy. In the context of food prices, it’s imperative that such discussions are grounded in reality rather than rhetoric."
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