News

Food prices lower in May

U.S. retail food prices dropped again in May. The USDA says the overall consumer price index for grocery store foods is down a half a percent. USDA economist AnnaMarie Kuhns says prices are down from the start of 2016 for several reasons, including lower farm level prices for many products, the strength of the U.S. dollar and lower oil prices for transporting food. Kuhns says only two food major food items were higher in May and one of them was beef. While prices increased in May, they are down compared to 2015. Fresh fruit prices rose more than one-percent last month and are nearly 3% higher than last May.

Kuhns has predicted a one-to-two percent increase in food prices for this year, however a new report is set to come out this Friday and that might change.  The USDA says food prices have declined five of the past seven months.