Americans are saving money at the gas pump, only to spend it in the produce aisle.
Gasoline and grocery prices moved in opposite directions last month, as the overall inflation rate declined slightly. Consumer prices in November were up 7.1% from a year ago, compared to an annual increase of 7.7% the month before. It was the smallest 12-month increase since December of last year.
The inflation figures were released Tuesday by the Labor Department, just as the Federal Reserve prepares to raise interest rates for the seventh time in nine months on Wednesday.
As fuel prices fall, however, food prices have been climbing. Grocery prices rose 0.5% in November, led by a whopping 8.9% jump in the price of lettuce.
An insect-borne virus curbed lettuce production in the Salinas Valley this fall. And while gasoline prices have tumbled, the diesel fuel used to truck vegetables still costs nearly $5 a gallon.
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Article URL : https://www.npr.org/2022/12/13/1141907024/gas-food-inflation-november-prices-economy-cpi