FMI Statement on May CPI Food Price Numbers

Arlington, VA - Today, FMI - The Food Industry Association commented on the May Consumer Price Index (CPI) numbers from the U.S. Bureau of Labor Statistics (BLS), which shows a 0.1% increase in food-at-home prices for May and a 2.7% increase over the last 12 months.

FMI Vice President of Tax, Trade, Sustainability and Policy Development Andy Harig stated, "Today's CPI numbers for food at home represent a clear cooling from April's elevated figure and should be welcome news for grocery shoppers facing an otherwise challenging inflationary environment. Food-at-home inflation increased just 0.1% in May and 2.7% over the past year, coming off what will hopefully be the peak in oil prices that drove food prices higher in April."

Harig continued, "This moderation in food price increases is a positive development, but it is important to remember that a number of factors continue to place upward pressure on costs throughout the food supply chain. Weather-related disruptions remain a significant concern including persistent drought, diminished snowpack out West, and an El Niño weather pattern that could negatively affect agricultural production. At the same time, the impact of increased fertilizer costs earlier this spring may not be felt on store shelves until this fall and beyond. Food companies are also facing increased costs for certain imported ingredients, equipment and packaging materials as tariffs continue to affect critical supply chain inputs. So, uncertainty around food price inflation will likely persist through the summer."

FMI Vice President of Research and Insights Steve Markenson added, "Consumers continue to be understandably concerned about higher grocery prices. The good news is that 78% of grocery shoppers agree that grocery stores try hard to provide them with options to help them stay within budget - up eight percentage points since December. This demonstrates that shoppers believe the food industry is on their side in navigating a challenging food price environment and is a partner in helping them stretch their food dollars."