Food prices were flat in April, report shows

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Food prices were flat for the second straight month in April, a relief to many Americans who have faced higher grocery costs in recent months.

That is a significant improvement compared to February, when prices rose by 0.4 percent in the course of the month.

Prices for food for the home fell by 0.2 percent in April compared to the previous month. Prices for food in restaurants continued to climb, rising 0.4 percent over the month, down slightly from 0.6 percent in March.

Despite the easing of food price growth, costs are still much higher than before the pandemic. Overall, food prices have risen by 7.7 percent over the past year.

Prices for fruit and vegetables fell by 0.5 percent over the month and the index for meat, poultry, fish and eggs also fell by 0.3 percent. Milk prices fell 2 percent, the biggest drop since February 2015. Egg prices, which peaked after an outbreak of avian flu and increased fuel, feed and packaging costs, fell 1.5 percent after falling 10.9 percent percent in March.

Prices for grains and bakery products rose by 0.2 percent, against 0.6 percent a month earlier.

Food prices started shooting up about two years ago when the cost of labor, transportation and raw materials went up. Other factors, such as the higher marketing and packaging costs of food products, have also led companies to pass those increases on to consumers. Weather-related events, such as extreme droughts in the western United States, have resulted in lower crop yields and higher delivery costs.

Economists said food prices could begin to moderate as labor pressure eases and industry-wide wage growth slowed in recent months. Recent drops in fuel prices have also helped lower transportation costs.

The prices consumers pay for food in restaurants tend to change more slowly because of higher labor costs.

“Americans have faced significantly higher costs for basic necessities,” said Sarah House, a senior economist at Wells Fargo. “The fact that you see some easing here is very important for the consumer.”