This week’s December CPI report showed continued progress on overall inflation, with most core components exhibiting stable or moderating price trends. However, food inflation stood out relative to other categories, drawing increased attention as an area where price pressures have proven more persistent, reflecting ongoing pass-through from labor, transportation, and input costs.
Our Consumer Edge Food Pricing Index, powered by Basketview purchase data — a low-latency dataset spanning convenience, grocery, online, and big box channels — extends visibility into how these dynamics are evolving as the year begins. After a notable step-up in food pricing in December — consistent with the trends reflected in the December CPI report — data running through January 11th shows that pricing has accelerated even more sharply, rising by approximately 40 basis points in the first two weeks of the year.
Importantly, the acceleration is accompanied by a broadening of price increases across the food basket. The share of food categories experiencing greater than +3% year-over-year price growth reached 51% vs. 46% at the end of November, suggesting that pricing pressure is becoming more widespread rather than being concentrated in a small number of categories. This pattern suggests a more generalized shift in food pricing dynamics at the start of the year.
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