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Diving overview:
- Consumer price index data released Friday by the Bureau of Labor Statistics showed take-out prices rose 2.7% annually in September, the same rate as the previous month.
- Overall inflation rose to 3%, the fastest pace since January.
- Meat prices in September rose 8.5% compared to the same period last year, continuing the upward trend that started in June.
Dive Insights:
Although the overall pace of grocery inflation was unchanged in September, this data point masks a sharp rise in the price of meat, a key category for retailers.
Beef and veal prices rose particularly sharply last month, as commodity prices rose 14.7% from 13.9% in August. In September, raw beef grill prices rose 18.4%, raw beef steak prices rose 16.6%, and raw beef prices rose 12.9%.
Beef and veal prices have risen steadily for most of 2025, accelerating each month since May. The Trump administration has said it plans to try to improve the situation by increasing imports of beef from Argentina, a move critics said would harm U.S. beef producers.
Meanwhile, pork prices rose less than 2% in September, while bacon and related product prices rose nearly 6%, down from 7.2% in August.
Last month, fruit and vegetable prices rose 5.3% for apples, 6.9% for bananas, and 4.2% for lettuce.
Prices for frozen fish and seafood rose 6.6% year-over-year in September, while shelf-stable varieties fell 3%. Overall, fish and seafood prices rose 2.1% last month.
Egg prices fell 1.3% in September, a U-turn from the nearly 11% annual rise recorded in August.
Other foods whose prices fell last month included butter and margarine, which fell 2%, and peanut butter, which fell 1.2%.
Food prices are rising due to the political situation that could affect millions of people who rely on government assistance to pay for groceries. The USDA said last week that there is a risk that SNAP benefits will not be paid in November due to the ongoing federal government shutdown. Additionally, federal employees who have not been paid due to the shutdown are turning to food banks for help, according to media reports.
