INDIANAPOLIS, IN - Grocery prices decreased slightly for the fourth consecutive quarter, according to the latest “market-basket” survey from Indiana Farm Bureau. Prices are also down slightly compared to a year ago, the survey showed.
This informal “snapshot” of grocery store prices shows the total cost of the 16 food items for the 2nd quarter of 2009 was $46.07, down just 36 cents from the first quarter of 2009 and 77 cents from the 2nd quarter of 2008. However, prices are down by $4.63 from the fall of 2008, when the market basket reached its all-time high. Of the 16 items included in the survey, eight decreased, seven increased, and one remained the same compared to the prior quarter.
A nationwide survey compiled by the American Farm Bureau Federation from data supplied by 33 state Farm Bureaus including Indiana had similar results. The total cost of 16 items was $46.29, down about 2 percent or $1.12 from the first quarter of 2009.
“The quarter-to-quarter price decline reported by our volunteer shoppers indicates that consumers are seeing some relief at the grocery store. Even more significant is that average retail prices for eggs, milk, chicken breasts and bacon for the second quarter of 2009 are significantly lower than one year ago,” said AFBF economist Jim Sartwelle.
“Generally speaking, shoppers can save money by purchasing less processed foods,” noted Isabella Chism, IFB second vice president. And, she added, the foods that declined the most in retail price are among the least-processed items in the Farm Bureau market basket.
“When wholesale prices paid to producers for minimally processed foods such as these decrease drastically, as has been the case over the past few months, consumers typically benefit fairly quickly from retail price reductions in the grocer’s case,” Sartwelle said.
The items that decreased in price from the first to the second quarter were: boneless chicken breasts, $3.28/pound, down 67 cents from the first quarter; 5 pounds of potatoes at $2.95, down 13 cents; sliced deli ham, $4.82/pound, down 7 cents; bacon, $2.96/pound, down 11 cents; 1 gallon whole milk, $2.83, down 8 cents; large eggs, $1.23/dozen, down 16 cents from the first quarter; bread, $1.52 for a 20-ounce loaf, down 17 cents; and bagged salad mix, $2.20 for a 16-ounce bag, down 6 cents.
Sirloin tip roast, at $3.75/pound, was unchanged from the previous quarter.
The items that increased in price from the first to the second quarter were: ground chuck, $2.87/pound, up 12 cents; 1 pound of shredded cheddar cheese for $4.41, up 44 cents; 5 pounds of flour for $2.52, up 7 cents; cereal, $3.06 for a 10-ounce box, up 16 cents; orange juice, $3.13 for a half-gallon carton, up 24 cents; a 32-ounce bottle of vegetable oil for $3.11, up 2 cents; and apples, $1.43 per pound, up 5 cents..
Several items experienced significant price changes compared to a year ago. Among the largest price drops were bacon, down 31 cents from a year ago; whole milk, down 55 cents from a year ago; and eggs, down 62 cents from a year ago.
AFBF’s second quarter market-basket survey tracks closely with the federal government’s May 2009 Consumer Price Index report for all food, which showed a slight decline (-0.2 percent) for the fourth consecutive month.
AFBF, the nation’s largest general farm organization, has been conducting the market-basket survey since 1989. The mix of foods included in the market basket was updated in 2008.
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, according to Agriculture Department statistics,” Sartwelle said.
“Americans spend just under 10 percent of their disposable annual income on food, the lowest average of any country in the world,” Chism said. “Food is such a bargain in this country.”
Items
2nd quarter 2009
Compared to 1st quarter
Apples, 1 lb.
$1.43
$0.05
Potatoes, 5 lb.
$2.95
-$0.13
Ground chuck, 1 lb.
$2.87
$0.12
Sirloin tip roast, 1 lb
$3.75
$0.00
Sliced deli ham, 1 lb.
$4.82
-$0.07
Bacon, 1lb.
$2.96
-$0.11
Boneless chicken breast, 1 lb.
$3.28
-$0.67
Whole milk, 1 gal.
$2.83
-$0.08
Shredded cheddar cheese, 1 lb.
$4.41
$0.44
Grade A large eggs, 1 doz.
$1.23
-$0.16
Flour, 5 lb.
$2.52
$0.07
Vegetable oil, 32 oz.
$3.11
$0.02
Bagged salad mix, 1 lb.
$2.20
-$0.06
Orange juice, 1/2 gal
$3.13
$0.24
Cereal, 10-oz. box
$3.06
$0.16
White bread, 20-oz. loaf
$1.52
-$0.17
TOTAL
$46.07
-$0.36
