Food prices soar as inflation sees biggest, fastest increase in decades

Consumer prices for goods and services rose again in December, spiking inflation to its fastest rate and the highest increase in 40 years. For the past 12 months, the inflation rate has surged upward and is up 7% from last December.

The increase was up from last month's year-over-over increase of 6.8% and the biggest, fastest increase since June 1982, according to the Bureau of Labor Statistics (BLS) monthly Consumer Price Index (CPI) report released on Wednesday.

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Overall, consumers prices increased 0.5% in December, after rising 0.8% in November. Excluding food and energy, consumer prices were up, increasing 0.6% in December after a 0.5% increase in November.

Although prices for food increased 0.5% in December, the increase was less than in the last three months.

Prices for meats, poultry, fish, and eggs declined 0.4% in December after rising for the last seven months. Beef was down 2% and pork nearly 1% for December. Pork prices increased more than 2% in November. Both beef and pork prices have surged sharply year-over-year.

Prices across five of the six major grocery store categories increased in December with fresh fruit rising 1.8%, including citrus fruit up 6.5% from November.

In the last 12 months, Americans have seen a sharp rise in both foods consumed at home and what they pay at restaurants and for takeout. That trend continued.

In December, what consumers pay for food at grocery stores rose 6.5% over the last 12 months, the BLS said. The report revealed that increase compares with an average annual increase of 1.5% over the last 10 years.

Prices across all six major grocery store categories also rose in December for the year.

The meat, poultry, fish, and eggs category had the largest year-over-year increase, rising 12.5%. For the year, consumers paid 13% more for ground beef and 22% for beef roasts. While bacon declined in December, for the year, it’s up more than 18%. Eggs remained flat for December but increased 11% for the last 12 months.

Food away from home, the cost for eating out at restaurants, takeout, and limited services meals, increased 0.6% in December. While it was the same increase in November, it was the largest since January 1982, the BLS said. For the year, the cost of eating out, or food away from home, according to the report, rose 6%.

Excluding food and energy, consumer prices were up 5.5% for the year, the largest increase in 30 years.

Here's a market basket of food items that had month-over-month increases according to the Labor Department's December report:

Oranges 8.9%

Citrus fruit 6.5%

Potatoes 4.9%

Margarine 3.8%

Frozen fruit and vegetables 3.4%

Crackers, bread and cracker products 2.7%

Lunchmeat 2.7%

Canned fruit 2.7%

The CPI reflects changes in prices in certain goods and services by consumers. Spending patterns cover all urban consumers and urban wage earners and clerical workers in urban or metropolitan areas.

Contact Detroit Free Press food writer Susan Selasky and send food and restaurant news to: 313-222-6872 or sselasky@freepress.com. Follow @SusanMariecooks on Twitter.

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This article originally appeared on Detroit Free Press: Consumer prices up 7% for the year, inflation at 40-year high