Inflation rate in Bay Area rises at fastest pace in more than a year

"The Bay Area inflation rate hopped higher in December at its swiftest annual pace in more than a year, an increase that was influenced by fast-rising food costs, although gasoline prices continued to plunge. The consumer price index in the Bay Area rose 3% in December, the U.S. Bureau of Labor Statistics stated in its most recent report on the region's inflation rate."

"The cost of food was one of the primary propellants behind the elevated increase in the Bay Area inflation rate, information that this new organization culled from the federal agency's databases shows. Food prices jumped at a yearly pace of 4.3%, which was the fastest increase in more than two years, going back to an August 2023 increase of 4.5%. Grocery costs, officially known as food consumed at home, soared higher by 5.7% in December compared with the year before."

The consumer price index in the Bay Area rose 3% in December, the largest yearly increase since June 2024. Inflation in the Bay Area outpaced the national rate, as the U.S. CPI rose 2.7% over the same period. Rapidly rising food costs were a major driver: overall food prices climbed 4.3%, groceries jumped 5.7%, and food consumed away from home rose 2.9%. Gasoline prices continued to plunge, partially offsetting inflationary pressures. Category-specific changes included a 5.1% drop in meat, poultry, fish, and eggs; fruit and vegetable costs up 2%; dairy up 2%; cereals and bakery products up 1.5%; rents up 1.7%; and medical services up 2.5%.

Read at www.mercurynews.com