Retail food prices at the supermarket declined slightly during the second quarter of 2012 with protein staples—meats, cheese, milk and eggs—showing the greatest drops in price, 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 one or more meals was $50.91, down $1.56 or about 3% compared to the first quarter of 2012. Of the 16 items surveyed, 12 decreased and four increased in average price compared to the prior quarter. The cost for the overall basket of foods fell about one-half of 1% compared to one year ago.
Most of the quarter-to-quarter decrease in the marketbasket of foods was due to lower retail prices for sliced meats and dairy products.
AFBF's Marketbasket survey indicates declining retail food prices for common grocery staples.
“The decline in retail meat prices for the second quarter is not unexpected,” said John Anderson, an AFBF senior economist. “Wholesale meat prices trended lower at the end of the first quarter of the year and consumers are benefiting from that as retail prices have followed suit.”
Two items continued declines from the prior quarter. Whole milk declined by 17 cents to $3.36 for one gallon and boneless chicken breasts decreased by 10 cents to $3.09 per pound.
Four items showed modest retail price increases: ground chuck increased 12 cents to $3.65 per pound; Russet potatoes increased 5 cents to $3.06 for a 5-pound bag; white bread increased 3 cents to $1.88 for a 20-ounce loaf; and vegetable oil increased 1 cent to $2.98 for a 32-ounce bottle.