California shoppers are facing a significant rise in grocery prices, with inflation in the “food at home” category reaching an average annual rate of 3.3% this summer, according to a report by Silicon Valley. This marks a substantial increase from the 1.5% rate in 2024. The rise in grocery inflation is more than double the overall cost of living increase, which averaged 3.1% in the same period.
The Consumer Price Index (CPI) data from the U.S. Bureau of Labor Statistics shows that the Los Angeles area experienced a 4.2% rise in food prices over the past year, while the San Francisco area saw a 3.5% increase. The increased costs are attributed to higher production and distribution expenses, as well as new tariffs on imported food items.
Certain grocery categories have seen particularly steep price hikes. Meats, poultry, fish, and eggs rose by 4.3% annually, while fruits and vegetables increased by 4.1%. Nonalcoholic beverages and sweets also saw significant price increases, impacting household budgets across the state.
The surge in grocery prices is part of a broader trend of inflation affecting various sectors in California. The overall CPI for the Los Angeles area increased by 3.3%, while San Francisco’s CPI rose by 2.5% over the past year. Despite the cooling of inflation in dining out, which saw a 3.6% increase, eating out remains 28% more expensive than five years ago.
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