Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Wednesday, April 15, 2009

Consumer Prices - Still smells like deflation

From the Bureau of Labor Statistics today:

The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.2 percent in March, before seasonal adjustment, the Bureau of Labor Statistics of the U.S. Department of Labor reported today. The index has decreased 0.4 percent over the last year, the first 12 month decline since August 1955.
On a seasonally adjusted basis, the CPI-U decreased 0.1 percent in March after rising 0.4 percent in February. The decrease was due to a downturn in the energy index, which declined 3.0 percent in March after rising 3.3 percent the previous month. All the energy indexes decreased, particularly the indexes for fuel oil, natural gas, and motor fuel.
The food index declined 0.1 percent for the second straight month to virtually the same level as October 2008. The food at home index declined 0.4 percent, the second straight such decrease, as the index for dairy and related products continued to decline.
The index for all items less food and energy increased 0.2 percent for the third month in a row. An 11.0 percent increase in the index for tobacco and smoking products accounted for over sixty percent of the March rise, with a 0.6 percent increase in the new vehicles index also contributing. In contrast, the indexes for lodging away from home, used cars and trucks, and airline fares continued to decline. The index for all items less food and energy has risen 1.8 percent over the past year.

The food and beverages index declined 0.1 percent in March, the same decrease as in February. A 0.4 percent decrease in the food at home index more than offset 0.1 percent increases in the indexes for food away from home and for alcoholic beverages. Within food at home, the indexes for three of the six major grocery store food groups declined. The largest decline was in the dairy and related products index, which fell 2.4 percent in March, the same decrease as in February, as the milk index declined 4.4 percent. The index for meats, poultry, fish and eggs decreased 0.9 percent, the fifth straight monthly decline, as the index for eggs fell 4.6 percent and the beef index declined 1.4 percent. The index for cereals and bakery products also declined in March, while the other food at home index was virtually unchanged. Registering increases in March were the indexes for fruits and vegetables and for nonalcoholic beverages. The food index has increased 4.4 percent over the past year, with the food at home index up 4.3 percent.


TK: On a commodity basis, the BLS reports the average retail price for red delicious apples in March was $1.195 per pound, down slightly from $1.209 at the same time last year and up fractionally from $1.191 in February. The average price for navel orange average retail prices was 88.9 cents per pound, down from 89.8 cents per pound the same time last year and off from an average price of 91.2 cents per pound in February. Banana prices were 63.4 cents per pound, up from 59.7 cents per pound in March last year but down from 64.1 cents per pound in February. Finally, the average retail price for tomatoes was $1.511 cents per pound in March, down from $1.805 in March of last year and off from $1.556 in February.