Food inflation accelerates as beef and poultry costs climb, pressuring consumer spending during peak grilling season.
US grocery prices increased in May as beef and poultry costs surged ahead of Memorial Day weekend, the traditional start of grilling season. The rise marks the third consecutive month of food inflation, outpacing broader consumer price trends.
Analysts had expected a modest uptick, but prices jumped 0.6% month-over-month, exceeding the 0.3% consensus estimate. Year-over-year food inflation now stands at 3.2%, up from 2.9% in April, driven by supply chain disruptions and higher feed costs.
Markets showed limited reaction, with futures on soft commodities edging higher while retail stocks remained flat.