A new report by the American Farm Bureau Federation (AFBF) has revealed that retail food prices at US supermarkets fell for the second consecutive quarter, with the cost of 16 food items including potatoes and apples dropping around 5.5 per cent, or US$2.80, from the fourth quarter of 2008.
In the group's latest Marketbasket Survey, 11 of the items decreased in average price, with apples falling on average US$0.16 to US$1.35 per lb and Russet potatoes dropping US$0.31 to US$3.05 per bag.
The major fallers in price were shredded cheese and milk, a result of weak demand for US dairy products, according to AFBF economist Jim Sartwelle.
Additionally, the survey revealed that consumers are still purchasing fresh produce items in increasing volumes.
'A trend that shows no sign of slowing down is consumers buying more fruits and vegetables, as well as pre-chopped and partially prepared foods,' said Terry Gilbert, chair of the AFBF women's leadership committee, who added that the average fall in prices was 'welcome news'.
Meanwhile, American salad was one of the few products to increase in average price, up US$0.02 to US$2.63 for a 1lb bag.
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