Grocery Prices Increase in First Quarter

March 14, 2002

Supermarket prices increased for consumers in the first quarter of 2002, according to results of the American Farm Bureau Federation's quarterly market basket survey. The average total cost of 16 basic grocery items increased 50 cents on the latest informal survey conducted in February.

"This increase of a half-dollar translates into a 1.4 percent gain in the food prices surveyed," said AFBF Senior Economist John W. Skorburg. "In general, food prices still remain in line with overall inflation."

The $36.02 average paid by shoppers marks the eighth time an increase was recorded in the first quarter since the initial survey conducted in the first quarter of 1989. Last year's first quarter showed a 25-cent increase.

Despite steady increases in total average cost since the survey's inception, American consumers still enjoy affordable food prices reflected in the fact that the total is only $7.52 more than the inaugural average of $28.50.

Of the 16 grocery items surveyed, 10 increased in price, five declined in price and one remained stable compared to the 2001 fourth quarter survey. Russet potatoes saw the largest increase with a jump of 26 cents to $2.17 per 5-pound bag, followed by an 18-cent increase in the average cost of corn oil to $2.43 per 32-ounce bottle and a 14-cent increase in vegetable oil to $2.22 per 32-ounce bottle.

Other notable increases in prices were found in white bread, up 13 cents to $1.30 per 20-ounce loaf, and mayonnaise, up 12 cents to $2.99 per 32-ounce jar. Other items to experience price increases included oat cereal, up 9 cents to $3.01 per 10-ounce box; Red Delicious apples, up 7 cents to 97 cents per pound; ground chuck, up 2 cents to $2.17 per pound; whole fryers, up 1 cent to $1.07 per pound; and eggs, up 1 cent to $1.05 per dozen.

Some meat and dairy products experienced significant drops in average cost. The biggest decrease was recorded in sirloin tip roast, down 18 cents to $2.90 per pound; followed by whole milk, down 13 cents to $2.81 per gallon and center cut pork chops, down 12 cents to $3.17 per pound. Cheddar cheese dropped 10 cents to $3.54 per pound and bacon was down a penny to $2.84 per pound.

A total of 93 volunteer shoppers in 33 states participated in the 2002 first quarter survey.