Park Ridge, IL - Americans had to pay slightly more for food during the second quarter of 1998, according to the American Farm Bureau Federation's latest Marketbasket Survey. The average price of a basket of selected grocery items increased 27 cents from the year's first quarter.
The 16 selected items on the survey cost $32.18, up from last quarter's $31.91 average. However, the increase follows two consecutive quarters when the average price decreased.
Second-quarter increases have been the norm since the survey's inception in 1989. Prices fell only once during the second quarter, that coming in 1991.
"The summer months are typically the time of year when prices increase," said Terry Francl, a senior economist with the American Farm Bureau Federation. "With barbecues and holidays, prices tend to increase slightly during the late spring and summer months."
Prices for a 5-pound bag of flour and a pound of pork chops showed the largest increases on the survey. The price of flour jumped 14 cents to $1.47, while pork chops increased 12 cents to $3.03.
Francl was surprised by the average price on the flour. Wheat prices have declined dramatically during the past several months. Francl said the increase is generated at the retail level. "A lot of the time, retail prices go contrary to the numbers we would expect," said Francl.
Of the 16 items on the survey, 11 increased in price. A 32-ounce jar of corn oil cost $2.52, an 8-cent jump. Other increases included vegetable oil, $2.25 per 32-ounce jar, up 7 cents; white bread, $1.21 per 20- ounce loaf, up 4 cents; potatoes, $1.55 per 5-pound bag, up 4 cents; bacon, $2.13 per pound, up 4 cents; cereal, $2.74 per 10-ounce box, up 3 cents; apples, 96 cents per pound, up 2 cents; whole milk, $2.55 per gallon, up 2 cents; and whole fryers, 96 cents per pound, up 2 cents.
A 32-ounce jar of mayonnaise fell 19 cents to $2.49, representing the largest decrease on the survey. Other decreases included ground chuck, $1.65 per pound, down 8 cents; sirloin tip roast, $2.64 per pound, down 4 cents; eggs, 92 cents a dozen, down 3 cents; and cheddar cheese, $3.09 per pound, down 2 cents.
Volunteer shoppers from 33 states participated in this latest survey in mid-April. The average total price of this quarter is only $3.68 higher than the $28.50 average price of the inaugural survey conducted in the first quarter of 1989.
AFBF, the nation's largest general farm organization with more than 4.78 million members, conducts its informal quarterly Marketbasket Survey to help track retail food prices to ensure they are in line with prices received by the nation's farmers and ranchers. The farmers' and ranchers' share of the food dollar has remained fairly steady over the course of the survey. The farm value of each food dollar spent in the United States is approximately 23 cents. Labor, at 38 cents, is the largest component of the consumers' food dollar.
Meat Industry Insights News Service
P.O. Box 553
Northport, NY 11768
Phone: 631-757-4010
Fax: 631-757-4060
E-mail: sflanagan@sprintmail.com
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