Food prices see biggest surge in three years, doubling pace of broader inflation

It was the first release of the CPI since September, following the 43-day government shutdown in October and part of November.
It was the first release of the CPI since September, following the 43-day government shutdown in October and part of November. (Getty Images/iStockphoto)

Dairy, bakery goods and produce climb – but cheaper eggs offer a rare break

Food prices surged 0.7% in December, marking the largest one-month increase in over three years and more than doubling the broader economy’s inflation rate of 0.3%, according to the Bureau of Labor Statistics’ Consumer Price Index (CPI) released Tuesday.

It was the first release of the CPI since September, following the 43-day government shutdown in October and part of November.

The report marked the highest jump in grocery prices since August of 2022, when the CPI reported a month-over-month increase of 0.86%. For restaurants, December was the sharpest increase since October of 2022, when the rate was at 0.94%.

Year over year, grocery prices were up 2.4% and restaurant prices were up 4.1%. Full-service meals (restaurants with waitstaff) rose 4.9% and limited-service meals (fast-food style and quick-service restaurants) were up 3.3% for the 12-month period ending in December, according to the report.

President Donald Trump lauded the overall results, which showed steady inflationary growth, writing on social media: “JUST OUT: Great (LOW!) Inflation numbers for the USA.”

Meanwhile, the Democratic National Committee (DNC) criticized the president, singling out rising food prices as a sign of a weak economy.

“Nearly 70% of American families are struggling to afford groceries and living paycheck to paycheck as prices continue to skyrocket,” the DNC said.

Costs rise for most grocery staples

Four of the five grocery categories saw price increases in December, with dairy and related products experiencing the biggest month-over-month jump at 0.9%.

Dairy was followed by cereals and bakery products at 0.6%, fruits and vegetables at 0.5% and nonalcoholic beverages at 0.4%.

Meat, poultry, fish and eggs was the only category to decline in price in December, down 0.2%. That was largely driven by an 8.2% drop in the price of eggs for the month.

FMI - The Food Industry Association said the drop in meat and egg prices was “a bright spot” for the index.

“A decrease in protein prices is welcome news for shoppers that have experienced significant price increases in that category in recent months,” said FMI Vice President of Tax, Trade, Sustainability and Policy Development Andy Harig.

Stubborn inflation and tax breaks

Harig said the price increases show that efforts to lower prices are an “ongoing challenge.”

“Overall inflation remains stubbornly above the Federal Reserve’s 2% target, and food prices also disappointingly reflected this trend in December,” he said. “While we are hopeful that a portion of this month’s number is likely tied to the holidays and may stabilize in 2026, we recognize the continued pressure on the American shopper’s wallet.”

Republicans said relatively flat core inflation was a sign that the Trump administration and congressional Republicans are making life more affordable.

“When Americans get tax refund checks this spring, they will see how Republican tax cuts for working families put more money in their pockets with the largest tax refunds ever,” said House Ways and Means Committee Chairman Jason Smith, of Missouri. “A family can expect an average tax refund of $4,000, the equivalent of five months of groceries.”

Food Price Changes (December 2024 - December 2025)

Expenditure CategoryDec. 2024 - Dec. 2025Nov. 2025 - Dec. 2025
All items2.7%0.3%
Food3.1%0.7%
Food at home2.4%0.7%
Cereals and bakery products1.5%0.6%
Cereals and cereal products-0.4%-0.3%
Flour and prepared flour mixes2.4%1.1%
Breakfast cereal0.6%-1.0%
Rice, pasta, cornmeal-1.7%0.1%
Rice0.8%1.0%
Bakery products2.3%0.4%
Bread2.2%1.1%
White bread2.1%2.0%
Bread other than white2.2%0.1%
Fresh biscuits, rolls, muffins3.6%2.0%
Cakes, cupcakes, and cookies3.3%-0.7%
Cookies3.7%-2.2%
Fresh cakes and cupcakes2.3%0.4%
Other bakery products1.1%0.6%
Fresh sweetrolls, coffeecakes, doughnuts1.7%0.0%
Crackers, bread, and cracker products2.7%0.8%
Frozen and refrigerated bakery products, pies, tarts, turnovers-2.6%1.0%
Meats, poultry, fish, and eggs3.9%-0.2%
Meats, poultry, and fish6.9%0.5%
Meats9.2%0.6%
Beef and veal16.4%1.0%
Uncooked ground beef15.5%0.2%
Uncooked beef roasts17.5%-1.6%
Uncooked beef steaks17.8%3.1%
Uncooked other beef and veal15.3%-0.2%
Pork0.8%0.3%
Bacon, breakfast sausage, and related products-0.2%-0.8%
Bacon and related products0.7%-1.0%
Breakfast sausage and related products-0.8%-1.4%
Ham0.6%1.8%
Ham, excluding canned0.5%1.6%
Pork chops1.2%5.0%
Other pork including roasts, steaks, and ribs1.9%-1.6%
Other meats5.1%0.0%
Frankfurters6.6%2.6%
Lunchmeats3.1%-0.7%
Poultry1.4%0.8%
Chicken1.2%0.4%
Fresh whole chicken-1.2%-0.2%
Fresh and frozen chicken parts2.0%0.3%
Other uncooked poultry including turkey2.2%2.2%
Fish and seafood4.4%-0.2%
Fresh fish and seafood3.6%-1.2%
Processed fish and seafood5.5%0.7%
Shelf stable fish and seafood3.4%0.8%
Frozen fish and seafood8.6%0.3%
Eggs-20.9%-8.2%
Dairy and related products-0.9%0.9%
Milk-1.0%0.1%
Fresh whole milk-1.0%0.5%
Fresh milk other than whole-1.1%-0.2%
Cheese and related products-1.6%1.4%
Ice cream and related products0.8%2.2%
Other dairy and related products-1.1%0.9%
Fruits and vegetables0.5%0.5%
Fresh fruits and vegetables0.3%0.4%
Fresh fruits0.7%1.0%
Apples1.3%0.3%
Bananas5.9%-1.6%
Citrus fruits0.8%5.5%
Oranges, including tangerines2.1%5.3%
Other fresh fruits-1.2%-1.1%
Fresh vegetables-0.2%-0.2%
Potatoes-3.4%0.8%
Lettuce7.3%1.7%
Tomatoes-3.0%-0.6%
Other fresh vegetables-0.3%-0.3%
Processed fruits and vegetables1.5%0.6%
Canned fruits and vegetables1.6%0.1%
Canned fruits3.4%0.5%
Canned vegetables0.5%0.0%
Frozen fruits and vegetables0.0%2.4%
Frozen vegetables-1.6%2.8%
Other processed fruits and vegetables including dried2.9%-0.6%
Dried beans, peas, and lentils2.1%0.7%
Nonalcoholic beverages and beverage materials5.1%0.4%
Juices and nonalcoholic drinks2.3%0.5%
Carbonated drinks3.0%0.7%
Frozen noncarbonated juices and drinks5.5%-0.3%
Nonfrozen noncarbonated juices and drinks1.3%0.4%
Beverage materials including coffee and tea11.8%0.5%
Coffee19.8%1.9%
Roasted coffee18.7%1.5%
Instant coffee28.0%1.0%
Other beverage materials including tea3.8%-1.0%
Other food at home2.7%1.6%
Sugar and sweets6.9%0.8%
Sugar and sugar substitutes0.6%0.4%
Candy and chewing gum10.0%0.5%
Other sweets-0.4%2.2%
Fats and oils0.8%1.8%
Butter and margarine-2.2%0.5%
Butter-3.4%0.2%
Margarine5.0%0.3%
Salad dressing5.6%3.0%
Other fats and oils including peanut butter-0.4%1.9%
Peanut butter1.4%4.3%
Other foods2.2%1.8%
Soups2.3%1.8%
Frozen and freeze dried prepared foods0.3%0.8%
Snacks2.2%1.1%
Spices, seasonings, condiments, sauces1.7%1.9%
Salt and other seasonings and spices2.1%1.0%
Olives, pickles, relishes2.2%0.9%
Sauces and gravies1.7%2.2%
Other condiments5.2%2.4%
Baby food and formula0.8%0.2%
Other miscellaneous foods3.6%2.9%
Prepared salads2.9%0.1%
Food away from home4.1%0.7%
Full service meals and snacks4.9%0.8%
Limited service meals and snacks3.3%0.6%
Food at employee sites and schools3.8%0.3%
Food at elementary and secondary schools1.2%0.1%
Food from vending machines and mobile vendors6.0%0.5%
Other food away from home5.0%0.2%

Source: U.S. Bureau of Labor Statistics, Consumer Price Index