That said, the CPI for other food products remained elevated. Cereals and bakery rose 0.6% in the same time frame, while the nonalcoholic beverage category ticked up 0.2%. The index for the “other food at home” category edged 0.4% higher. In contrast to an easing of food-at-home prices, the BLS reported that the CPI for food away from home went up 0.6% in March, continuing a recent string of price increases in the foodservice arena. Heading into late spring and summer, the CPI for full-service meals climbed 0.7%, with limited-service meals rising 0.5%. In March, shelter was the biggest contributor to overall inflation, according to BLS data. Prices for household furnishings and apparel also rose in March, while the index for gasoline dipped 4.6%. The greater-than-expected softening of grocery inflation last month, along with the latest employment data affirming job growth in March, may impact the Fed’s decision to raise interest rates when it meets again in early May. Other factors are at play, such as the recent banking crisis and the stickiness of core inflation that remains above target levels. For now, the news is heartening for those in the food retailing business. Mark Zandi, chief economist at Moody’s Analytics, told news outlet CNBC that the June 2022 peak seems to be receding. “Inflation is fundamentally moderating,” Zandi said. “And all the trend lines look good. I can say that with increasing confidence.” Original article found at Progressive Grocer.