U.S. food prices are less volatile than fuel prices

U.S. food and fuel prices are typically more volatile than other consumer spending categories but the sizes of the price swings differ. Over the past two decades, motor fuel prices often experienced double-digit annual price swings, and the average annual change in food prices (2.9 percent) was lower than household energy (3.2 percent) and motor fuel prices (4.7 percent). In 2024, food prices grew by 2.3 percent, while household energy prices increased by 2.4 percent and motor fuel prices declined by 5.3 percent. This followed relatively large increases for each of these categories in 2022 and a cooling period beginning in 2023.