Some not so egg-cellent news out of this month's CPI inflation report.
In the month of July, the cost of groceries jumped 1.1% compared to a year ago, per the latest data from the Bureau of Labor Statistics . It's up 0.3% compared to June. The price of eggs, up 19.1% year over year and 5.7% month over month, contributed to the stubbornly high food prices.
The 12-month change in egg prices is the largest since April 2023, when the cost jumped 21.4% year over year. The average price for a dozen large Grade A eggs went from $2.72 in June to $3.08 in July. A dozen eggs cost $2.52 at the start of 2024.
Premium egg producer Pete and Gerry's CEO Tom Flocco told Yahoo Finance the price is affected by supply-demand dynamics, such as avian flu outbreaks crimping supplies. He noted it's not the case for the premium category, where hens are spread out and free-range.
The largest input cost is grain, he added, which includes corn, soybeans, and nutrients. It could account for over 50% of the price for a dozen eggs. Other factors include contracts with farmers, transportation, and the cost of labor, which has been elevated over the last 18-24 months.
BLS economist Steve Reed called food-at-home costs overall a "mixed bag" as they are consistently volatile.
Two other grocery items jumped out: bacon and frozen non-carbonated juices and drinks.
Bacon saw the largest yearly increase since July 2022, up 8.5%, while frozen non-carbonated juices and drinks are up 19.2% year over year.
Coca-Cola ( KO ) recently told Yahoo Finance that inflation drove prices higher last quarter. Overall, its unit case volume jumped 2%, while pricing was up 9%.
Some good news: fresh fish and seafood saw its biggest monthly decline ever, down 2.4%. On a yearly basis, it was down 2.1%.
Food away from home, aka dining out, brought overall food inflation higher, up 4.1% year over year and up 0.2% from June to July.
Limited-service meals (like fast food) saw the largest jump, up 4.1%.
Major players like McDonald's ( MCD ), Taco Bell ( YUM ), Burger King ( QSR ), and KFC have introduced value promotions this summer as consumers push back against pricier burgers.
Average restaurant spend at quick-service restaurants, excluding pizza, fell 1.4% year over year in June and 2.9% in July, per a note from Bank of America analyst Sara Senatore, based on credit and debit card data.
Full-service meals saw a 3.8% year-over-year bump in cost.
"It's a value war," Dine Brands Global ( DIN ) CEO John Peyton told Yahoo Finance. "It's a fight for share of wallet."
Overall inflation remained steady , up 2.9% from a year ago, with food up 2.2% year over year and up 0.3% on a monthly basis.
—
BrookeDiPalma
