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Retail prices drop to 50 year low

The USDA says grocery prices declined to a 50 year low last year.

The USDA Economic Research Service says retail food prices dropped 1.3 percent, the first annual decline since 1967.

Increased production of many commodities, lower transportation costs and a strong dollar were some of the reasons for the declines.

Decreases in the price of eggs, beef and veal, pork and dairy offset increases for the price of fresh fruit and other foods.

Food purchased away from home increased 2.6 percent in 2016.

The USDA expects prices this year to range from flat to one percent higher with increases to poultry, fish and seafood, and dairy prices.

Grocery prices increased 0.2 percent from January to February this year but remains lower than last year. The Consumer Price Index for all items increased 0.3 percent over that same period and is above 2016 levels.

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