U.S. Inflation Slows Unexpectedly: Here’s What It Means For Grocery Prices

Annual inflation increased 2.7 percent last month, according to a Labor Department report Thursday that showed an unexpected deceleration of U.S. consumer prices in November.

The inflation rate was strongly influenced by energy costs, which were up 4.2 percent in November due to sharply increasing fuel oil prices. Consumers are still paying about 1.9 percent more for groceries than they were a year ago, according to the Labor Department’s November consumer price index report.

Grocery price increases were strongly influenced by higher prices for beef and other meats, poultry, fish and eggs. Together, prices on these protein staples have increased 4.7 percent over the past year.

The November CPI shows the price of a beef roast has soared 21.2 percent more than last year, ground beef costs 14.9 percent more and steaks cost 14.77 percent more.

Frozen fish and seafood are up 11.6 percent, and fresh fish and seafood are up 11.6 percent.

Pork chops may be the best bargain in the meat case, with prices down 6.3 percent from a year ago. Egg prices, which rise and fall with bird flu epidemics, were 13.2 percent lower than a year ago.

Here’s a look at real grocery prices in early December, according to an NBC News grocery price tracker.

Egg prices have decreased 58 cents over the past year to average prices of $3.98 for a dozen; chicken breasts cost $4.99 a pound, up 22 cents; ground beef costs $6.58 a pound, up 68 cents; orange juice costs $4.81 for 32 ounces, up $1.15; bacon costs $6.62 a pound, up five cents; and a loaf of bread costs $3.13, down five cents.

NBC gets its grocery price data from the global marketing research firm NIQ, which collected real checkout prices nationwide from grocery stores, drugstores, mass merchandisers, selected dollar stores, selected warehouse clubs and military commissaries.

The CPI report, delayed during the 43-day government shutdown, is the first look at the consumer price index since September numbers released on Oct. 24 showed a 3 percent increase from a year earlier. Forecasters had expected the November CPI to match that year-over-year increase.

The report also showed President Donald Trump’s tariffs haven’t been as inflationary as economist had feared. They do put upward pressure on prices and complicate matters for the Federal Reserve, which is trying to decide whether to keep cutting its benchmark interest rate to support a sputtering job market or hold off until inflationary pressures ease.

The central bank last week decided to reduce the rate for the third time this year, but Fed officials signaled that they expect just one cut in 2026.

The Associated Press contributed to this report.

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