The cost of eating at home jumped 0.7% in December, driven by the continued surge in beef prices and increases in a broad range of other foods, including dairy products, cereal and baked goods, and fruits and vegetables.
Beef prices rose 1% in December and are up 16.4% over the past year, according to the monthly Consumer Price Index (CPI) released by the Bureau of Labor Statistics on Tuesday.
The rise in grocery prices contributed to a 0.3% increase in the overall CPI in December, which is up 2.7% year over year. The index for food at home has risen 2.4% over the past year.
The biggest factor in the overall increase in the cost of living last month was a 0.4% in housing costs.
The index for dairy products rose 0.9% in December, led by a 1.4% increase in the cost of cheese.
The cost of fruits and vegetables increased 0.5%, led by a 5.3% rise in the cost of oranges, a 1.7% increase in lettuce prices and a 0.8% increase in the cost of potatoes.
The index for cereal and bakery products rose 0.6%.
“Today’s CPI numbers reflect the ongoing challenge of bringing food inflation under control,” Andy Harig, vice president of tax, trade, sustainability and policy development for FMI-The Food Association, said in a statement. FMI represents major grocery chains.
He noted that “categories across the board saw notable increases.”
“Overall inflation remains stubbornly above the Federal Reserve’s 2% target, and food prices also disappointingly reflected this trend in December. While we are hopeful that a portion of this month’s number is likely tied to the holidays and may stabilize in 2026, we recognize the continued pressure on the American shopper’s wallet,” Harig said.
The cost of food eaten away from home also rose 0.7% in December and is up 4.1% over the past year.
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