US food inflation slowed for a third straight month in November, marking a contrast to the grocery price trend in the UK.
Food prices rose at an annualised 10.6% pace, the least since June’s 10.4% rate, the US Bureau of Labor Statistics reported yesterday (13 December). The print in November 2021 was 6.1%.
The numbers were published hours before the UK government released its own figures, which showed food and soft drinks prices were up for a sixteenth consecutive month in November, reaching a 45-year high of 16.5%.
However, in terms of headline inflation rates, the US reported a 7.1% clip in the 12 months through November, the lowest level since December 2022 and slowing for a fifth straight month.
The UK also reported a slowdown, to 10.7% from October’s 11.1%, which was the highest in 41 years.
Both countries’ central banks meet to set interest rates this week, with the Federal Reserve’s decision due later today and the Bank of England’s tomorrow. Policymakers on opposite sides of the Atlantic have been raising borrowing costs of late to thwart inflationary pressures, which are being felt by food manufacturers around the globe.
On a monthly basis, US food inflation trends showed differing characteristics, as prices for fruit, vegetables, cereals and bakery rose, while protein prices fell.
Fruit and veg prices climbed 1.4% last month after falling 0.9% in October. Cereals and bakery rose 1.1% while dairy was up 1% month-on-month.
Meanwhile, prices for meat, poultry fish and eggs dropped 0.2% in November, in contrast to October’s 0.6% increase. Beef and pork prices were down 0.8% and 0.3%, respectively.
Non-alcoholic beverages continued to move higher in November, rising 0.7% versus a 0.5% increase in October, the Bureau said.
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