October 6, 2008

Retail Food Prices Rise 10.5 Percent

By Anonymous

Retail food prices in the third quarter rose by 4 percent from the second quarter and by 10.5 percent from the third quarter of 2007, the American Farm Bureau Federation reported.

High energy prices boosted the cost of several staple foods as reflected in sustained high costs for processing, hauling and refrigerating foods, the Federation said in a release. The group's Marketbasket Survey tracks the cost of 16 basic grocery items.

Potatoes, cheddar cheese and apples showed the largest price increases. Some food commodities rose in price based on a reduction of acres of that commodity farmed - potato prices rose on some production losses in the field and a nearly 8 percent reduction in potato acreage, the Federation said.

Credit: IBR Staff Report

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