Sharp Drop In Wholesale Food Prices.(Brief Article)(Statistical Data Included)

Food Institute Report, The, March, 1999

Following January's hefty 1% increase in the finished consumer food portion of the Producer Price Index, February wholesale food prices fell a signficant 1.3%. The drop in the food portion of the PPI - the major indicator of food price changes before they reach the consumer level - suggests there will not be a resurgence in food price inflation as indicated in USDA's most recent 1999 food price outlook calling for only a 2.0%-2.5% hike in consumer at-home food prices (Mar. 1 FOOD INSTITUTE REPORT, p. 1).

Of the 17 major PPI food groups tracked, 10 registered month-to-month declines including a significant 23.5% drop in fresh vegetable prices, an 11.2% decrease in egg prices, a 5% decline in pork prices, a 4% drop in shortening & cooking oil, a 2.6% dip in...

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