- August data from the Bureau of Labor Statistics shows a sharp increase in grocery prices.
- Grocery prices jumped the most in August since 2022, driving up the cost of coffee, beef, and eggs.
- Inflation exceeds the Federal Reserve’s 2% target, complicating rate decisions amid job market woes.
Tariffs are showing up for items on your shopping list.
A Bureau of Labor Statistics report released Thursday shows broad-based price increases across tariff-sensitive goods. In August, the price of the “food at home” category saw the largest monthly gain since August 2022.
Here is what you could expect to pay more for — and for how much more in comparison to August 2024 — the next time you need to restock your fridge, according to the latest data:
- Roasted coffee: 21.7%
- Uncooked beef steaks: 16.6%
- Eggs: 10.9%
- Apples: 9.6%
- Candy & chewing gum: 8.1%
- Bacon: 7.2%
- Noncarbonated juices & drinks: 7.1%
- Frozen fish & seafood: 6.7%
- Bananas: 6.6%
- Oranges: 5.2%
- Canned fruits: 4.3%
- Chicken: 4.2%
On top of food, prices for apparel, audio products, motor parts, furniture, and new cars all ticked up in August. The price of energy also saw a notable 0.7% increase.
Depending on which city you reside in, the effects of inflation might be felt more. According to a September report by WalletHub, which compared 23 major Metropolitan areas, the three cities that have seen the most inflation are Tampa, Florida, San Diego, California, and Philadelphia.
All the price increases have placed inflation far above the Federal Reserve’s inflation target of 2%, which leaves the agency a tough choice to make amid a softening labor market. Jobless claims last week hit their highest level since October 2021, and recent data suggest virtually no net job growth so far this year.
According to the CME Group’s FedWatch, a tool that provides real-time probabilities for Federal Open Market Committee rate changes, markets jumped Thursday on growing bets that the Fed will cut rates next week, followed by more reductions later this year.
The Federal Reserve did not immediately respond to a request for comments.
