Grocery Prices See Largest Drop in Nearly Five Years as Gas Prices Continue to Fall

     In a welcome shift for American consumers, grocery prices experienced their most significant monthly decline in almost five years, while gas prices fell for the third consecutive month, according to new data released Tuesday. The latest figures from the U.S. Bureau of Labor Statistics show that food-at-home costs dropped by 0.4% in April, marking the largest decrease since September 2020. This decline was broad-based, with five of the six major grocery store group indexes posting reductions.

     Egg prices led the way, plummeting by 12.7% in April-the steepest one-month drop in over four decades. The index for meats, poultry, fish, and eggs fell by 1.6%, while cereals and bakery products declined by 0.5%. Fruits and vegetables, as well as other food-at-home categories, also posted modest decreases. Nonalcoholic beverages were the only grocery category to see a slight uptick, rising by 0.7%.

     The drop in grocery prices comes as a relief to many households grappling with persistent food inflation over the past several years. Although food costs at restaurants and bars continued to rise, the widespread decline in grocery prices suggests a genuine shift rather than a temporary fluctuation.

     Gas prices, meanwhile, continued their downward trend, falling for the third month in a row. This contributed to a broader cooling of inflation, with overall consumer prices rising just 0.2% in April from March, and the annual inflation rate easing to 2.3%-the smallest increase in more than four years. The moderation in essential costs such as food and energy is providing some relief for workers, whose real wages have risen by 1.9% over the past three months.

     Economists note that while recent tariffs have yet to significantly impact consumer prices, their effects could be felt later in the summer. For now, however, the latest data points to a period of easing price pressures, offering much-needed breathing room for families across the country.