Inflation continues to slow, as fresh produce shows deflation

The U.S. Bureau of Labor Statistics released its monthly Consumer Price Index Summary April 10, 2025:

CONSUMER PRICE INDEX – MARCH 2025

The Consumer Price Index for All Urban Consumers (CPI-U) decreased 0.1 percent on a seasonally adjusted basis in March, after rising 0.2 percent in February, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 2.4 percent before seasonal adjustment.

The index for energy fell 2.4 percent in March, as a 6.3-percent decline in the index for gasoline more than offset increases in the indexes for electricity and natural gas. The food index, in contrast, rose 0.4 percent in March as the food at home index increased 0.5 percent and the food away from home index rose 0.4 percent over the month.

The index for all items less food and energy rose 0.1 percent in March, following a 0.2-percent increase in February. Indexes that increased over the month include personal care, medical care, education, apparel, and new vehicles. The indexes for airline fares, motor vehicle insurance, used cars and trucks, and recreation were among the major indexes that decreased in March.

The all items index rose 2.4 percent for the 12 months ending March, after rising 2.8 percent over the 12 months ending February. The all items less food and energy index rose 2.8 percent over the last 12 months, the smallest 12-month increase since March 2021. The energy index decreased 3.3 percent for the 12 months ending March. The food index increased 3.0 percent over the last year.

Food

The index for food increased 0.4 percent in March, after rising 0.2 percent in February. The food at home index rose 0.5 percent over the month as four of the six major grocery store food group indexes increased. Driven primarily by a 5.9-percent increase in the index for eggs, the index for meats, poultry, fish, and eggs rose 1.3 percent in March. The beef index also increased over the month, rising 1.2 percent. The index for other food at home increased 0.5 percent in March and the index for dairy and related products rose 1.0 percent. The nonalcoholic beverages index increased 0.6 percent over the month.

The index for fruits and vegetables declined 0.5 percent in March as the index for lettuce fell 3.5 percent. The cereals and bakery products index decreased 0.1 percent over the month.

The food away from home index rose 0.4 percent in March. The index for full service meals rose 0.6 percent over the month and the index for limited service meals rose 0.2 percent.

The index for food at home rose 2.4 percent over the last 12 months. The meats, poultry, fish, and eggs index rose 7.9 percent over the last 12 months as the eggs index increased 60.4 percent. The index for other food at home increased 1.1 percent over the same period, while the index for nonalcoholic beverages rose 2.4 percent. The dairy and related products index increased 2.2 percent over the 12 months ending in March and the cereals and bakery products index rose 1.1 percent.

In contrast, the index for fruits and vegetables decreased 0.7 percent over the same period.

The food away from home index rose 3.8 percent over the last year. The index for full service meals rose 4.1 percent and the index for limited service meals rose 3.4 percent over the same period.

Fresh Produce

Fresh fruit and vegetable prices dropped 0.9 percent year-over-year and 1.1 percent from February to March. Fresh fruit rose 1.2 percent year-over-year but dropped 1.1 percent from February to March. Fresh vegetables dropped 3.0 percent for the year and 1.1 percent for the month. Lettuce posted a 5.1 percent drop for the year, and tomatoes dropped 8.2 percent year-over-year in March.