Producer Prices

Americans paid more for their groceries in April, but high gas prices were only one of the reasons why. Government figures released on Tuesday showed prices for food eaten at home rose 2.9% last month compared to a year earlier. That was the highest year-over-year inflation for the category since August 2023. Rising fuel prices were a factor. But tariffs and extreme weather also have weighed on U.S. food prices. Two Purdue University economists say the costs to produce, process, store and transport food can take up to six months to show up on supermarket shelves. That means the full impact of rising energy costs on food likely hasn't hit retail grocery prices yet.