Some not so good news can be found in this month’s CPI inflation report.
In July, food prices rose 1.1% from a year earlier, according to the latest data from the Bureau of Labor Statistics, and 0.3% more than in June. The price of eggs, which rose 19.1% year over year and 5.7% month over month, contributed to stubbornly high food prices.
The 12-month change in egg prices is the largest since April 2023, when costs rose 21.4% year-over-year. The average price for a dozen large Grade A eggs rose from $2.72 in June to $3.08 in July. A dozen eggs cost $2.52 in early 2024.
CEO of premium egg producer Pete and Gerry, Tom Flocco, told Yahoo Finance the price is affected by supply and demand dynamics, such as bird flu outbreaks that limit supply. He noted that this is not the case for the premium category, where chickens are kept in open spaces and free-range.
The biggest cost is grain, which includes corn, soybeans and nutrients, he added. Grain can account for more than 50% of the price of a dozen eggs. Other factors include contracts with farmers, transportation and labor costs, which have increased over the past 18 to 24 months.
BLS economist Steve Reed described the overall cost of food at home as a “mixed picture” because it is subject to constant fluctuations.
Two other foods stood out: bacon and frozen non-carbonated juices and drinks.
Bacon saw its biggest increase since July 2022, up 8.5%, while frozen juices and non-carbonated beverages saw a 19.2% year-on-year increase.
Coca-Cola (KO) recently told Yahoo Finance that inflation drove up prices last quarter, with overall case volume increasing 2% while prices rose 9%.
Good news: Fresh fish and seafood saw the largest monthly decline ever at 2.4%. On an annual basis, the decline was 2.1%.
Eating out of the home, also known as eating out, drove up overall food inflation, which rose 4.1% year-on-year and 0.2% from June to July.
The largest increase was seen in dishes with limited availability (such as fast food), with an increase of 4.1%.
Major players such as McDonald’s (MCD), Taco Bell (YUM), Burger King (QSR) and KFC have introduced special offers this summer as consumers push back against more expensive burgers.
Average restaurant spending at quick-service restaurants (excluding pizza) fell 1.4 percent in June from the same period last year and 2.9 percent in July, according to a note from Bank of America analyst Sara Senatore based on credit and debit card data.
Full-service meals saw a 3.8% increase in costs compared to the previous year.
“It’s a war of values,” John Peyton, CEO of Dine Brands Global (DIN), told Yahoo Finance. “It’s a battle for share of the wallet.”
General inflation remained stable at 2.9% year-on-year, with food prices rising 2.2% year-on-year and 0.3% on a monthly basis.
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Brooke DiPalma is a senior reporter at Yahoo Finance. Follow her on Twitter at @Subscribe or email her at [email protected].
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