WASHINGTON, D.C. — Shoppers are paying slightly more for food items at the grocery store compared to the first half of 2013. Higher retail prices for meat items such as boneless chicken breasts and dairy products, among other foods, resulted in a slight increase in the American Farm Bureau Federation’s latest Semi-Annual Marketbasket Survey.
The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $53.20, up $1.66 or about 3 percent compared to a survey conducted about six months ago. Of the 16 items surveyed, 11 increased and five decreased in average price.
“Several poultry and dairy product items increased in price during the second half of the year, accounting for much of the increase in the marketbasket,” said John Anderson, AFBF’s deputy chief economist.
“As anticipated, food prices have increased by about 3 percent so far during the year, which is slightly higher than the average rate of inflation over the past 10 years,” he said.
Items showing retail price increases included:
These items showed modest retail price decreases:
The year-to-year direction of the market basket survey tracks closely with the federal government’s Consumer Price Index report for food at home. 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.
“Through the mid-1970s, farmers received about one-third of consumer retail food expenditures for food eaten at home and away from home, on average. Since then, that figure has decreased steadily and is now about 16 percent, according to the Agriculture Department’s revised Food Dollar Series,” Anderson said.
Using the “food at home and away from home” percentage across-the-board, the farmer’s share of this $53.20 marketbasket would be $8.51.