Fresh tomato prices fell 8.5% from April to May but remain 32% higher than a year ago, according to the latest CPI report. Weather disruptions in Florida and Mexico tightened supply earlier this year, and analysts expect prices to ease only gradually.
Despite news of an agreement between the U.S. and Iran, a wide-ranging decrease in prices is not expected in the near-term.
Food inflation hit 3.1% in May, but sharp spikes in coffee, beef, and produce are driving real pressure for CPG, retail, QSR, and foodservice operators, even as eggs and dairy deliver rare cost relief.
Gen Z’s “modular eating” trend is gaining momentum, as young consumers build meals from snackable, mix and match components. Driven by hybrid work, solo dining, and social media, this behavior blurs categories and rewards brands built for convenience, texture, and discoverability.
