May brought mixed news about Portland grocery prices, according to the latest Consumer Price Index from the U.S. Bureau of Labor Statistics, released Wednesday. West Region grocery prices rose 0.1% in May, reversing April's decline, while restaurant prices continue climbing faster than supermarket costs.
What the May Data Shows
The West Region CPI report — covering Oregon, Washington, California and 12 other western states — revealed grocery prices (food at home) rose 0.1% in May after declining 0.1% in April. This admittedly modest increase ended two months of declining grocery costs but remained well below the 0.5% increase from February to March.
Overall food prices climbed 0.2% for the month, with restaurants driving much of the increase. Food away from home (how the BLS tracks restaurant spending) jumped 0.3% in May, continuing a pattern of dining costs rising faster than grocery prices.
Breaking Down the Grocery Aisles
What Got More Expensive in May:
Cereals and bakery products: up 1.4% monthly (biggest increase among all categories)
Dairy products: up 0.4% monthly, ending three consecutive months of declines
Fruits and vegetables: up 0.4% monthly, bouncing back from April's decline
Other food at home (snacks, condiments, etc.): up 0.5% monthly
What Got Cheaper:
Eggs Continue Wild Price Swings
Egg prices remained the most volatile grocery item, dropping 2.7% nationally in May after months of increases. Despite this monthly decline, eggs are still 41.5% more expensive than a year ago due to ongoing avian flu impacts on poultry flocks.
The USDA expects egg prices to surge 39.2% for the full year 2025, making them the fastest-rising grocery category.
Locally, the Stumptown Savings Portland Egg Price Tracker showed an average price of $6.29 per dozen last month. Granted, the sample size is much smaller than what the U.S. government is tracking. The cheapest price per dozen we tracked locally last month was a shockingly low 76 cents per dozen (for a 60-pack) at a Tigard Walmart.
The Bigger Picture
Looking at year-over-year changes, West Region food costs remain elevated from this time in 2024. Inflation is down from its high points, but if you're feeling strained at the grocery store, you're not imagining things. Overall, food prices are up 3.5% annually, with grocery prices alone climbing 2.8% in the past 12 months.
The biggest price increases were:
Nonalcoholic beverages: up 4.4% annually
Other food at home: up 3.2% annually
Cereals and bakery products: up 2% annually
What This Means for Portland Shoppers
May's data suggests the brief respite we saw in April from rising grocery costs may be ending. While the 0.1% monthly increase is modest, it breaks the downward trend seen in March and April.
The persistent gap between grocery store and restaurant inflation — with dining out costs rising 4.4% annually versus 2.8% for groceries — continues to favor home cooking for budget-conscious consumers.
For Portland households, the mixed signals in May highlight the importance of strategic shopping:
Stock up on proteins: With meat prices declining 1.5% in May, this could be a good time to buy and freeze. We've seen several impressive protein sales in recent weeks.
Watch beverage costs: Nonalcoholic drinks remain one of the fastest-rising categories, so kicking that soda or bubbly water habit now could save you some serious cash.
Bread and cereal volatility: The 1.4% jump in bakery products suggests prices in this category remain unstable, so keep an eye out for good deals and consider stocking up and freezing bread when it goes on sale.
Looking Ahead
Signs are pointing to increased price increases throughout 2025. The USDA's latest outlook predicts continued food price challenges, with overall food prices expected to rise 2.9% in 2025. Key predictions include:
Expect Higher Prices:
Eggs: Expected to rise 39.2% due to ongoing fallout from the avian flu pandemic
Beef and veal: Expected to rise 6.6% due to tight supplies paired with increased demand
Sugar and sweets: Expected to increase 4.4% due to high cocoa bean costs globally
Nonalcoholic beverages: Expected to rise 4.2%, with increased largely stemming from coffee and domestic citrus issues
Potential Savings:
Fresh vegetables: Expected to fall 2.9%Â
Pork: Expected to fall 0.2%
The Tariff Factor
Adding uncertainty to the outlook, economists warn that Trump's tariffs could push food prices higher in the second half of 2025. Walmart and other retailers have already announced price increases to offset tariff costs on imported goods.
For Portland families, May's data serves as a reminder that while food inflation has cooled from 2022's peaks, prices remain elevated and volatile.
Smart shopping strategies — including taking advantage of weekly deals (highlighted each Thursday in Stumptown Savings), monitoring seasonal produce prices and cooking more at home — remain essential for managing food budgets in 2025.
Have you noticed changes in your grocery bills recently? Share your experiences in the comments below, or reach out with your best savings tips. Don't forget to log the egg prices you're seeing in the Portland Egg Price Tracker. It only takes 30 seconds.
The next West Region CPI report will be released July 15, 2025, covering June inflation data.
This article was written with AI assistance for analyzing the data and trends.

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