Americans’ hankering for bacon pushes retail price higher
Bacon is a sexy food item in restaurants and everywhere else, creating an inventory decline and thus a price increase.
September 26, 2017
Source: American Farm Bureau Federation
Higher retail prices for several foods, including bacon, chicken breast, orange juice, sliced deli ham and flour resulted in a slight increase in the American Farm Bureau Federation’s Fall Harvest Marketbasket Survey.
The informal survey shows the total cost of 16 food items that can be used to prepare one or more meals was $51.13, up $1.43, or about 3%, compared to a survey conducted a year ago. Of the 16 items surveyed, 12 increased and four decreased in average price.
Several foods showed significant retail price increases from a year ago, including bacon, chicken breast and orange juice, according to John Newton, AFBF’s director of market intelligence.
“Bacon was up significantly because of the lower inventory and higher prices of pork bellies. We saw a rally in wholesale bacon prices this summer and fall which is being reflected at the retail level,” Newton says. “Bacon is a sexy food item in restaurants and everywhere else, creating an inventory decline and thus a price increase.”
The following items showed retail price increases from a year ago.
• bacon, up 19% to $5.24 per pound
• chicken breast, up 9% to $3.13 per pound
• flour, up 7% to $2.37 per 5-pound bag
• orange juice, up 6% to $3.46 per half-gallon
• vegetable oil, up 5% to $2.52 for a 32-ounce bottle
• sliced deli ham, up 3% to $5.62 per pound
• sirloin tip roast, up 3% to $5.17 per pound
• whole milk, up 3% to $2.93 per gallon
• white bread, up 2% to $1.61 for a 20-ounce loaf
• toasted oat cereal, up 1% to $2.84 for a 9-ounce box