Staple food prices trending down from one year ago
WASHINGTON, D.C. — Retail food prices at the supermarket decreased slightly for the fourth consecutive quarter and are significantly lower than one year ago, according to the latest American Farm Bureau Federation Marketbasket Survey. The informal survey shows the total cost of 16 food items that can be used to prepare a meal was $46.03, down 26 cents from the second quarter of 2009 and $4.18 lower or about 10 percent less compared to one year ago.
Of the 16 items surveyed, nine decreased and seven increased in average price compared to the prior quarter.
Shredded cheddar cheese, ground chuck, whole milk, vegetable oil and Russet potatoes declined the most in price from quarter to quarter. Shredded cheddar cheese dropped 23 cents to $4.08 per pound; ground chuck dropped 17 cents to $2.65 per pound; whole milk dropped 14 cents to $2.87 per gallon; vegetable oil dropped 13 cents to $2.72 for a 32-oz. bottle; and Russet potatoes dropped 11 cents to $2.65 for a five-pound bag.
Other items that decreased in price were: Sliced deli ham, down five cents to $4.75 per pound; boneless chicken breasts, down two cents to $3.08 per pound; white bread, down one cent to $1.76 for a 20-oz. loaf; and sirloin tip roast, down one cent to $3.87 per pound.
Whole milk decreased 27 percent; cheddar cheese decreased 23 percent; potatoes decreased 22 percent; apples decreased 19 percent; eggs decreased 16 percent; vegetable oil decreased 16 percent; and ground chuck dropped 10 percent in retail price compared to a year ago, according to AFBF’s survey.
Several items went up slightly in price compared to the prior quarter: Bacon, up 18 cents to $3.37 per pound; orange juice, up 11 cents to $3.13 for a half-gallon; eggs, up 10 cents to $1.44 per dozen; toasted oat cereal, up nine cents to $2.95 for a 9-oz. box; flour, up six cents to $2.48 for a five-pound bag; apples, up five cents to $1.46 per pound; and bagged salad, up two cents to $2.77 for a one-pound bag. Compared to one year ago, bagged salad increased the most in price among the items in the basket, up 16 percent.
As retail grocery prices have increased gradually over time, the share of the average food dollar that America’s farm and ranch families receive has dropped.
“Starting in the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on average. That figure has decreased steadily over time and is now just 19 percent,” AFBF Economist Jim Sartwelle said.
Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this quarter’s $46.03 Marketbasket would be $8.75.
According to USDA, Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world. A total of 66 shoppers in 29 states participated in the latest survey, conducted in August.
