Prices US consumers paid for groceries jumped 2.6% in April.

The Labor Department reported Tuesday that prices U.S. consumers paid for groceries jumped 2.6% in April, the largest one-month pop since February 1974.

The Labor Department reported that the price of the meats, poultry, fish and eggs category rose 4.3%, fruits and vegetables climbed 1.5%, cereals and bakery products advanced 2.9%, and dairy goods gained 1.5%.

According to a CNBC article, Peter Boockvar, chief investment officer at Bleakley Advisory Group, wrote in an email: “Food price gains were robust as we know there are empty shelves out there. Demand we know in most areas of the economy has collapsed and prices are falling in response.” “In areas where demand has hung in, like ‘food at home’ we have inflation because the supply side has been damaged, whether directly via infected facilities or because of the higher costs of finding freight capacity.”

The Bureau of Labor Statistics also reported Tuesday that the CPI excluding food and energy prices slumped 0.4%, the steepest monthly drop since records have been kept. While the decline in prices was broad-based, the biggest swoons in the “core” part of the index came in apparel and transportation services, which dropped 4.7% apiece. Commodities not including food and energy fell 0.7% and medical care services prices were off 0.5%. Read the full report here.


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