The majority of the quarter-to-quarter dip is said to be due to the lower retail prices of sliced meats and dairy products. AFBF senior economist John Anderson said the Q2 decline was not unexpected. He said: “Wholesale meat prices trended lower at the end of the first quarter of the year and consumers are benefiting from that as retail prices have followed suit.”
A decrease in retail protein prices, according to AFBF, is reversing the price increases seen in Q1. Sliced deli ham has decreased by $0.19/lb, the cost of bacon has reduced by $0.17/lb and sirloin tip roast has gone down by $0.06/lb. Boneless chicken breast, however, has continued to decline since Q1 and is now down by around $0.10/lb. But the survey does highlight a small price increase for ground chuck, which is now $3.65/lb, up $0.12.
The AFBF survey was carried out in May and involved a total of 74 shoppers from 28 states.
By taking the total cost of 16 food items used to prepare one meal, the survey showed the price was down by $1.56 (3%) compared to Q1 and was down 1% on this time last year. The decrease could have a positive impact on shoppers as, according to the US Department of Agriculture, Americans spend just under 10% of their disposable income on food.
