Rising beef prices continue to put pressure on consumers, as the cost of eating at home rose 0.3% in September, driven largely by increases for beef, pork, bakery products and cereal.
Grocery prices are up 2.7% over the past 12 months, according to the latest Consumer Price Index, which was released by the Bureau of Labor Statistics on Friday after being delayed by the government shutdown.
The overall CPI also rose 0.3% in September and is up 3% year over year.
The increase in the cost of beef, which has largely been driven by a historic shrinkage of nation’s cattle herd amid a multiyear drought, has been a major focus of the Trump administration.
President Donald Trump angered cattle producers by saying Sunday that he planned to increase imports of Argentinian beef and then blasting cattle producers for complaining about the idea. The planned quota increase for Argentina is not expected to have a significant impact on cattle or beef prices.
Agriculture Secretary Brooke Rollins on Wednesday released a plan aimed at increasing domestic cattle production and beef processing capacity.
Pork prices rose 0.5% in September, while the price of eggs declined 4.7%. The index for dairy products fell 0.5%. The index for fruits and vegetables was flat, despite price increases for potatoes and bananas.
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Beef was up another 1.2% and is up 14.7% over the last 12 months. Pork rose 0.5%. Eggs were down 4.7%.
Prices for bakery products rose 0.7%, and prices for breakfast cereal rose 1% in September.
The index for food eaten away from home rose just 0.1% in September.
Andy Harig, FMI vice president of tax, trade, sustainability and policy development for FMI-The Food Industry Association, which represents major grocery chains, said in a statement that the report showed food costs “moderated somewhat in September” but remain “stubbornly higher than ideal. We recognize any increases are frustrating for shoppers as we approach the holiday season.”
The White House welcomed the overall CPI numbers.
“Inflation came in below market expectations in September thanks to President Trump’s economic agenda. ... Democrats choosing to keep the government closed will likely result in no October inflation report, which will leave businesses, markets, families, and the Federal Reserve in disarray," White House press secretary Karoline Leavitt said in a statement.
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