Grocery prices climb 2.9% in April, driven by fuel costs and weather

The U.S. Bureau of Labor Statistics said on May 12 that prices for food eaten at home rose 2.9% in April from a year earlier, the fastest annual increase in that category since August 2023. The same report showed grocery prices rose 0.7% from March, while overall food prices increased 3.2% from a year earlier. Energy costs were a major part of the broader inflation picture in April, with the BLS saying the energy index rose 17.9% over 12 months and accounted for more than 40% of the monthly increase in the overall consumer price index. ### Why did grocery inflation pick up in April? April data from the BLS showed five of the six major grocery-store food groups increased on the month, pushing the food-at-home index up 0.7%. Beef prices rose 2.7% in April, and the meats, poultry, fish and eggs category increased 1.3% on the month, according to the agency’s CPI release. (bls.gov) AP, in a report published May 12 and carried by ABC News and Scripps News, said higher gasoline prices tied to the Iran war were one reason grocery costs moved up. The report said the conflict was disrupting traffic through the Strait of Hormuz, a key oil shipping route, and noted that diesel powers fishing boats, tractors and trucks that move U.S. farm goods. (bls.gov) ### How much of this is fuel, and how much is food supply? AAA data cited by AP showed the average gasoline price on May 12 was up 61% from a year earlier. Raymond Campise, owner of Sparrow Market in Ann Arbor, Michigan, told AP that meat, produce and dry-goods suppliers had added fuel surcharges to deliveries in recent weeks and that wholesale prices for several products had also increased. (abcnews.com) Purdue University economists Ken Foster and Bernhard Dalheimer told AP that higher costs to produce, process, store and transport food can take three to six months to reach supermarket shelves. Foster said “most of what we’re seeing now in the food price chain probably predates the conflict,” while adding that economists were watching the May and June data for evidence of a larger energy pass-through. (abcnews.com) ### Which grocery categories rose the most? BLS data showed fresh fruit and vegetable prices were up 6.5% in April from a year earlier, according to figures cited by AP. Meat prices were up 8.8% from April 2025, the report said, making protein and produce two of the clearest pressure points for shoppers. (abcnews.com) The BLS release also showed food away from home rose 3.6% over 12 months, faster than grocery inflation on some monthly measures but below the April jump in several supermarket categories. In April alone, restaurant prices rose 0.2%, compared with a 0.7% monthly increase for food at home. ### Are restaurants seeing the same pricing pressure? (abcnews.com) The Philadelphia Inquirer reported on May 13 that some Philadelphia-area food businesses were cutting menu prices to keep customers returning. The article, by Michael Klein, said Hiroki reduced its omakase price and Termini Bros. rolled back pastry prices, presenting a contrast with the national grocery inflation data. (bls.gov) BLS data still showed restaurant prices rising overall, which means isolated menu cuts by individual operators have not yet translated into a decline in the national food-away-from-home index. The April CPI showed food away from home increased 3.6% from a year earlier and 0.2% from March. ### What should shoppers and economists watch next? (inquirer.com) June 11, 2026, is the next scheduled release date for the BLS consumer price index, when the agency will publish May inflation data. Purdue’s Foster told AP that the next few reports could show how much recent fuel and shipping shocks feed through to supermarket prices. (abcnews.com) (bls.gov)