Grocery prices are hitting household budgets, with many Americans citing the economy and inflation as top issues behind their votes In the November 5 elections. But there are signs that consumers may soon be getting a break on their grocery bills, with prices of some food items falling in October compared with a year earlier – the first decline in four years.
Online grocery prices fell 0.1% over a year in October — its first decline since January 2020, before the pandemic shuttered the U.S. economy and sent inflation soaring, according to new data From Adobe's Adobe Digital Price Index (DPI), which tracks online prices.
Online grocery prices reflect how much consumers pay when they order food from retailers like Walmart, Whole Foods and others through apps or websites.
To be sure, online grocery shopping represents only a portion of Americans' total food purchases, with about 20% of U.S. shoppers purchasing their provisions through an app or website in 2022, according to the U.S. Department of Agriculture. But October's price declines suggest that shoppers may find more relief at grocery stores, along with the Credit Karma survey in May. Search That nearly one-quarter of Americans had skipped meals because of the cost of food.
Grocery inflation has also largely moderated after reaching a pandemic-era peak of 13.5% in August 2022. In September, the cost of food consumed at home rose 1.3%, below the Federal Reserve's goal of keeping inflation down to 2% annually. Rate. And according to the USDA, grocery prices could remain relatively stable into 2025 present The cost of food at home will increase only 1.6% next year.
Broadly speaking, online prices across all product categories fell 2.9% in October from a year earlier, Adobe said. The decline was caused by falling prices of clothing and toys, which fell 10% and 4% respectively.
What to expect in the next CPI report?
The consumer price index for October will be released on Nov. 13, with economists estimating that inflation rose at an annual rate of 2.6% last month, according to economists surveyed by FactSet. This will reflect the increase from September 2.4% rate But a sharper decline than a year ago, when U.S. prices were still rising at an annual rate of 3.2%,
With inflation low, the Federal Reserve Cut your benchmark interest rateEconomists predict additional rate cuts at the central bank's December meeting.