Retail Food Prices Up 1.7% In January Vs. Month earlier

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February 24, 2011

Retail Food Prices Up 1.7% In January Vs. Month earlier

After almost two years of retail food price inflation of less than 1%, food prices jumped 1.4% in January from December. That is the largest month over month increase since January 2008 according to The Food Institute. This also put retail food prices during January 2.1% above prior year levels – the largest year over year increase since April 2009. Thus, there is no denying that food inflation is returning after a lengthy absence.?

After almost two years of retail food price inflation of less than 1%, food prices jumped 1.4% in January from December. That is the largest month over month increase since January 2008 according to The Food Institute. This also put retail food prices during January 2.1% above prior year levels – the largest year over year increase since April 2009. Thus, there is no denying that food inflation is returning after a lengthy absence.

All six major grocery store food groups posted increases. The index for nonalcoholic beverages increased the most, rising 1.5%, with the indexes for carbonated drinks and coffee both rising sharply. Carbonated beverage prices climbed 5% during January compared to the prior month, the largest such increase since the government began tracking soda prices back in 1978. Coffee prices, meanwhile, rose 5% during the month – the largest increase in almost thirteen years. 

The fruits and vegetables index increased 3.3%, the biggest jump since October 2008. The index for fresh vegetables was up 2.1% reflecting a 13.7% jump in wholesale prices as freezes and shipping difficulties during month drove costs higher.

For more on food prices and the other industry updates, be sure to turn to The Food Institute at www.foodinstitute.com