U.S. Grocery Inflation Hits Highest Rate Since August 2023 as Fuel, Weather and Tariffs Lift Costs

U.S. grocery prices rose 2.9% in April 2026 from a year earlier, the fastest annual increase since August 2023, Labor Department CPI data released May 12, 2026, showed. Overall food prices increased 3.2%, with higher fuel costs from the Iran war adding pressure across food production and transport. Diesel prices were up 61% from a year earlier, according to AAA, as shipping disruptions in the Strait of Hormuz affected global oil flows. Purdue economists said energy-related costs can take three to six months to reach supermarket shelves, suggesting further pass-through may appear in coming CPI reports. Fresh fruit and vegetable prices rose 6.5% year over year, meat climbed 8.8%, beef jumped 15% and coffee increased 18.5%. Tomato prices rose 40% after a 17% U.S. duty on Mexican imports imposed in July 2025. Egg prices fell 39% as farmers rebuilt flocks after bird flu losses, while butter declined 5.8%.