Grocery prices increase slightly for the second quarter. American Farm Bureau Federation’s market basket survey showed the national cost of sixteen food items increased by $2.10 to $51.17. The Indiana Farm Bureau recently released their numbers for the informal survey and the cost for those same sixteen items increased to $48.94, up $1.74. That’s an increase of around 3.5 percent from the first quarter of 2011. Twelve of the sixteen items increased in price during the second quarter with bacon (increasing 56 cents per pound) and whole milk (up 42 cents per gallon) leading the way. The items that decreased from the last quarter were led by sliced deli ham (down 29 cents per pound) and a 5 pound bag of flour (down 12 cents).
AFBF economist John Anderson says the effects of energy increases are carrying over to the food industry and consumers are feeling the pinch at the supermarket. Anderson adds that price increases will likely be the new norm in 2011, especially in meats. He says it takes farmers time to increase herds to meet the increase in meat demand.
Even though the cost of food may be increasing slightly for the consumer, USDA reports Americans still only spend less than 10 percent of their disposable income on food. That is still the lowest average of any other country in the world.
And if you’re like millions of Americans planning for a cookout this holiday weekend, you can expect a slight increase in some of your favorites. Indiana Farm Bureau’s 2011 Cookout market basket survey averaged $32.45 for the eleven items, an increase for $1.60 from 2010. Nine of the items increased in price since last year, most notably, two pounds of ground round, up 29 cents per pound and a 10-pack of hot dogs which increased 32 cents for a 10-pack.
Two items on the list decreased in price this year, a 24 ounce bottle of ketchup decreased 22 cents to $1.28 and a package of American cheese averaged $2.62, down 4 cents from a year ago.
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