8-6 FB Retail Milk Drops

 Retail food prices at the supermarket increased slightly during the second quarter of 2010, 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 $47.20, up $1.66 or 4 percent compared to the first quarter of 2010. The total average price for the 16 items increased about 2 percent compared to one year ago.

Of the 16 items surveyed, nine increased and seven decreased in average price compared to the prior quarter. Sirloin tip roast, sliced deli ham, bacon, boneless chicken breasts and ground chuck increased the most in dollar value from quarter-to-quarter. Foods that dropped in price compared to the prior quarter included Russet potatoes, eggs, vegetable oil, shredded cheddar cheese and whole milk. Wait a sec…a drop in the price of milk? Here’s the Chairman of the Idaho Dairymen’s Association Bob Naerboutmilk: “We’re just glad that the retail outlets are reflecting the lower price. There’s some elasticity in consumer demand and hopefully with the stores reflecting it will increase demand.

The year-to-year direction of AFBF’s Marketbasket Survey tracks with the federal government’s Consumer Price Index (www.bls.gov/cpi) report for food at home.