U.S.retail food prices up 4%

by Editor fleischwirtschaft.com
Monday, April 06, 2009

C. Retail food prices at the supermarket increased slightly in the second quarter of 2007, according to the latest American Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 basic grocery items in the second quarter of 2007 was $42.95, up about 4% or $1.61 from the first quarter of 2007.

Of the 16 items surveyed, 14 increased, one decreased and one stayed the same in average price compared to the 2007 first-quarter survey. Compared to one year ago, the overall cost for the marketbasket items showed an increase of about 8%. percent Regular whole milk showed the largest quarter-to-quarter price increase, up 34 cents to $3.46 per gallon. Sirloin tip roast increased 27 cents to $3.99 per pound; pork chops increased 22 cents to $3.63 per pound; ground chuck increased 20 cents per pound to $2.85.

Other items that increased in price: whole fryers, up 17 cents to $1.28 per pound; apples, up 15 cents to $1.45 per pound; vegetable oil and bread, both up 9 cents to $2.66 for a 32-oz. bottle and $1.58 for a 20-ounce loaf, respectively; mayonnaise, up 8 cents to $3.43 for a 32-oz. jar; and regular eggs, up 5 cents to $1.56 per dozen. Volunteer shoppers recorded nominal price increases for: cheddar cheese, up 3 cents to $3.72 per pound; flour, up 2 cents to $1.92 for a 5-pound bag; toasted oat cereal and corn oil, up 1 cent each to $2.86 for a 10-oz. box and $2.78 for a 32-oz. bottle, respectively.

Russet potatoes dropped 12 cents to $2.34 for a 5-pound bag. Bacon stayed the same at $3.44 per pound.

As retail grocery prices have gradually increased, the share of the average food dollar that America’s farm and ranch families receive has dropped over time.

AFBF, the U.S largest general farm organization, conducts its informal quarterly marketbasket survey as a tool to reflect retail food price trends. According to USDA statistics, Americans spend just under 10% of their disposable income on food annually, the lowest average of any country in the world. A total of 82 volunteer shoppers in 32 states participated in the latest survey, conducted during May.