The Bay Area inflation rate hopped higher in December at its swiftest annual pace in more than a year, an increase that was influenced by fast-rising food costs, although gasoline prices continued to plunge.
The consumer price index in the Bay Area rose 3% in December, the U.S. Bureau of Labor Statistics stated in its most recent report on the region’s inflation rate.
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Inflation is rising to a greater degree in the Bay Area than nationwide. The nation’s consumer price index rose at a yearly pace of 2.7% in December, the Bureau of Labor Statistics reported.
The cost of food was one of the primary propellants behind the elevated increase in the Bay Area inflation rate, information that this new organization culled from the federal agency’s databases shows.
— Food prices jumped at a yearly pace of 4.3%, which was the fastest increase in more than two years, going back to an August 2023 increase of 4.5%.
— Grocery costs, officially known as food consumed at home, soared higher by 5.7% in December compared with the year before. That was the sharpest rise since March 2023, also a span of well over two years.
— Food consumed away from home, such as at dining establishments, rose 2.9% over the one-year period. This figure was the highest since April 2025, when the category experienced an annual increase of 3.7%.
Here are the annual changes for some other key categories measured by the U.S. Bureau of Labor Statistics. The figures measure the one-year change in consumer prices for these categories as of December.
— Meat, poultry, fish, and egg prices fell 5.1% over the year.
— Fruit and vegetable costs rose at a yearly pace of 2%
— Dairy product prices rose 2% over the 12 months ending in December.
— Cereals and bakery products rose 1.5%
— Rental costs for a primary residence rose 1.7%
— Medical services costs increased by 2.5%
— Apparel costs fell by 0.1%
— Prices for new and used vehicles fell by 0.3%
Gasoline prices, as measured by regular unleaded gas, fell 1% in December compared with the same month the year before. Prices at the pump have been falling steadily since July 2024 in the Bay Area.
Despite the sharper than usual increase for Bay Area consumer prices, the region’s inflation nevertheless is subdued compared with the brutally high pace seen in 2022 and 2023.
In June 2022, consumer prices in the Bay Area skyrocketed higher by 6.8%, at that point representing the largest annual increase in about four decades.
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