ARLINGTON, Va. — Grocery price inflation remained relatively stable in June, offering some relief to consumers even as uncertainty surrounding global markets continues to cloud the outlook, according to FMI – The Food Industry Association.
Data released Tuesday by the U.S. Bureau of Labor Statistics showed food-at-home prices increased 0.2% in June, while grocery prices were up 2.7% from a year earlier, matching the annual increase recorded in May.
FMI said the latest figures suggest food inflation has moderated after sharper increases earlier this year, providing a measure of stability for consumers managing household budgets.
"June's relatively steady food inflation report should be welcome news for grocery shoppers following the larger increases we saw earlier this year, even as the longer-term outlook remains uncertain," the association said in a statement. "While food prices remain elevated compared with a year ago, June's historically consistent increase is an encouraging sign for families who continue to carefully manage their household budgets."
The trade association cautioned, however, that several factors could put upward pressure on food prices in the months ahead, including developments in global energy markets, geopolitical tensions and broader supply chain disruptions.
FMI pointed to the recent resumption of conflict in Iran as an example of how international events can quickly affect food production and distribution costs through higher energy prices and transportation expenses. Other cost drivers include fertilizer, animal feed, packaging, labor, weather-related disruptions and international trade conditions.
Despite those challenges, FMI said grocery retailers remain focused on maintaining competitive prices while working with suppliers to manage costs and strengthen supply chains.
"Across the industry, food retailers are working closely with farmers, manufacturers and suppliers to manage costs, strengthen supply chains and keep grocery prices as affordable as possible," the association said, adding that it will continue to monitor economic conditions while supporting access to "safe, affordable and abundant food options" for consumers.
