Inflation

Inflation growth slows to 9-month low

Consumer prices in October rose 0.4% for the month and 7.7% year over year, its lowest annual increase since January, leading some to believe inflation may be moderating.
Photograph: Shutterstock

Consumer prices in October rose 0.4% for the month and 7.7% year over year, its lowest annual increase since January, the Bureau of Labor Statistics reported. Thursday.

There was a cooling off as well for all items, less food and energy, which rose 0.3% in October—a big dip from 0.6% in September, the Bureau of Labor Statistics' (BLS) October Consumer Price Index (CPI) revealed.

The food index increased 10.9 % over the last year—all of these increases were smaller than for the period ending in September, BLS reported. The food index increased 0.6 % over the month, with the food-at-home index rising 0.4 %.

 

“The October CPI further illuminates the challenge that Americans have faced for months," said  Andy Harig, FMI's VP of  tax, trade, sustainability and policy development, in a statement. “The cost of consumer goods continues to rise, adding pressure on budgets across the country.Grocery stores, and the entire food industry, are doing all they can to ensure Americans have options to stay within their grocery budget and remain committed to working with their customers to help mitigate the impacts of inflation."

Thursday's CPI numbers "make it clear that this is still a difficult time for consumers," Harig said. "While myriad factors influence food prices, the food industry is collaborating throughout the entire supply chain to keep costs low for consumers."

When it comes to winning in the face of inflation for retailers, Matt Pavich, senior director of retail innovation for Revionics, an AI-powered retail price optimization solutions company, told WGB in an email that discounters are leading.

"It's no secret why Aldi has become one of the largest grocers during a period of high inflation and uncertainty,” Pavich told WGB. “Budget constrained shoppers are migrating to brands like Aldi for their fantastic pricing on quality items. Food remains one of the largest household expenses for the average family and getting more value from each basket can play a significant role in navigating today’s high-cost landscape." 

Grocery items seeing notably high inflation in October include:

  • Eggs, 43%
  • Flour and prepared flour mixes, 24.6%
  • Butter and Margarine, 33.6%
  • Crackers, bread and cracker products 18.7%

 

Trending

More from our partners