U.S. GROCERY PRICES ROSE 1.1% IN MARCH

The Consumer Price Index for food at home rose 1.1% in March, bringing the total rise for food to 2.7% over the past three months, the U.S. Bureau of Labor Statistics reported.

Overall, the index rose 0.5% in March on a seasonally adjusted basis – but the food index, including food at home and away from home, was up 0.8%. Gasoline and food prices together accounted for nearly three-quarters of the March index rise.

Food eaten away from home rose 0.3% - its largest increase since September - but the CPI report noted that grocery prices are outpacing restaurant price rises. Prices increased at all six major grocery store food groups in March, the report said, with increases ranging from 0.5% for cereals and bakery products to 1.9% for all fruits and vegetables.

The fresh fruits and vegetables sector saw a 4.7% increase, on the heels of a 6.7% increase in February, with tomatoes, potatoes and lettuce rising ahead of other produce. The index for dairy was up 1.3%, while for meats, poultry, fish, and eggs it rose 1.1%.

Over the past year, food at home has risen 3.6% with the index for meats, poultry, fish and eggs up 7.9%.

Although food price rises will undoubtedly affect Americans, particularly in the current economic climate, rising food prices are likely to have less impact on Americans than elsewhere in the world, according to market research organization The Nielsen Company. It says that food represents 6.9% of average household expenditure in the United States, compared to more than 11% for the average Austrian household, 15% in South Korea, and 45% in Pakistan.