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Monday December 11, 2017

Some perspective on U.S. food prices

The American Farm Bureau Federation’s 31st annual informal price survey of classic items found on the Thanksgiving table indicates the average cost of this year’s feast for 10 will be down by 24 cents, coming in at $49.87 vs. last year’s average of $50.11. The big ticket item – a 16-pound turkey – came in at a total of $22.74 this year. That’s roughly $1.42 per pound, a decrease of 2 cents per pound, or a total of 30 cents per whole turkey, compared to 2015.

That good news for consumers comes even as CNN Money takes note of stock-price increases for several upscale grocers rising in response to the election of President-Elect Donald Trump. CNN interprets the trend as the market betting Trump's economic plan will lead to more inflation, particularly inflation in agricultural commodities and, eventually, food prices. And any hint of significant food-price inflation typically spurs calls to improve Americans' "food security" by, among other measures, guaranteeing basic income levels and increasing food-relief programs.

But how bad is America's food inflation?

USDA makes a series of charts available that disect its food-expenditure figures over time. They demonstrate that although food prices have inflated over the years, American consumers continue to enjoy food at a relative share of personal income that's a fraction of other countries, and is overshadowed by other consumer expenditures.

Food spending compared to others

Food spending compared to others

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