Americans paid more for groceries in April as food inflation accelerated, though economists said rising gasoline prices tied to the Iran war were only part of the problem.
According to Labor Department data, prices for food consumed at home rose 2.9% from a year earlier, the highest annual increase since August 2023. Restaurant and prepared meal prices also climbed, pushing overall food inflation to 3.2%.
The report said higher diesel prices linked to disruptions in the Strait of Hormuz increased transportation and delivery costs across the food supply chain. Grocery suppliers and small retailers reported added fuel surcharges and rising wholesale prices for meat and produce.
Economists from Purdue University said energy costs may take months to fully affect supermarket shelves. They also pointed to tariffs, drought conditions, and global supply issues as major drivers behind rising prices.
Fresh vegetables, meat, and coffee saw notable increases, while egg and butter prices declined compared with last year.
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