November shows an increase in the food index with diverse elements

At Morning Fresh Farms in Platteville, a remarkable process unfolds. Derek Yancey, the president and owner, emphasizes that from egg laying to carton placement, human touch is minimal. With a daily production of 700,000 eggs, it's a staggering number. To put it in perspective, that's a dozen eggs in every seat of Invesco field.

Inflation's Impact on Food Index

The Bureau of Labor Statistics reported that the food index, a measure of inflation, increased during November. The food-at-home index rose 0.5% and the food-away-from-home index increased 0.3%. This is part of the Consumer Price Index which measures inflation. Over the last 12 months, the all items index increased 2.7% before seasonal adjustment.Andy Harig, a vice president of FMI-The Food Industry Association, pointed out that inflation is stubborn. While food-at-home remains below the Fed's 2% target at 1.6% year-over-year, the monthly increase of 0.5% in egg prices (driven by avian influenza) and 3.1% in beef prices (driven by high input costs) pose challenges. November's numbers show that eating at home is still the best bet for affordability.Four of the six major grocery store food group indexes increased in November. The index for meats, poultry, fish and eggs rose 1.7%, with beef up 3.1% and eggs 8.2%. Nonalcoholic beverages increased 1.5% after a 0.4% rise in October. The index for other food at home rose 0.1% and fruits and vegetables increased 0.2%.However, the cereals and bakery products index fell 1.1%, the largest one-month decrease since 1989. The dairy and related products index declined 0.1%. The food-away-from-home index rose 0.3% in November, with full-service and limited-service meals also increasing.Over the last 12 months, the food-at-home index rose 1.6%, with meats, poultry, fish and eggs up 3.8%, nonalcoholic beverages 2.8%, fruits and vegetables 1.1% and other food-at-home 0.7%. Dairy and related products increased 1.2%, while cereals and bakery products declined 0.5%, the largest 12-month decline since December 2017. The food-away-from-home index rose 3.6% over the year, with limited-service meals up 3.7% and full-service meals 3.6%. The index for shelter rose 0.3% in November, accounting for nearly 40% of the monthly all-items increase.