USDA reported the February food Consumer Price Index (CPI) up 0.4 percent from January and up 9.5 percent YOY. The price index rose 0.6 percent for food away from home and half that for food at home.

Among the component indexes, eggs saw a notable move down from January but remain up 55 percent YOY. Eggs are a major reason behind food inflation for the year to date, though other categories have contributed more significantly, chiefly cereals and bakery products, other foods, nonalcoholic beverages, and dairy products.

The CPI for food at home is now forecast to rise 7.5 percent in 2023, with the highest gains expected for eggs, fats and oils, cereal and bakery, processed fruits and vegetables, and sugar and sweets. Given the weighted contribution of the categories, the top contributors to 2023 food inflation are expected to be other foods, cereal and bakery, and nonalcoholic beverages.

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Posted by: Information Services
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