Fruits, vegetables show price decline

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The Packer Feb 22, 2012

Deflation hit the produce department again in January, but higher fuel prices could pull prices higher in the months ahead.

The retail price index for fruits and vegetables declined by 1.3% in January for its fourth consecutive drop, according to the latest statistics from the U.S. Bureau of Labor Statistics.

Led by a 10% increase in the price of gasoline, the overall consumer price index for energy has increased 6.1% over the past year, according to the release. That could raise growing and transportation costs in the months ahead.

For the three-month period ending in January, consumer prices for fruits and vegetables declined 8%, according to the agency.

The price index for fruits and vegetables declined by 0.1% during the last 12 months, according to the agency. Fruits and vegetables are the only grocery store category to see a decline in prices over the past year. In contrast, the price of dairy products increased 9% in the past year, according to the news release.

Two examples of produce bargains were oranges and tomatoes.

The average retail price for navel oranges in January was 93 cents per pound in January, down from 98 cents in December and well below $1.05 per pound average in January 2011. The average cost of tomatoes was $1.54 in January, up a penny from December but down 5 cents compared with the same time a year ago.

The overall food index rose 0.2% in January, the same increase as in December, according to the release.

The overall food at home index has increased 5.3% in the past year, according to the release.

The consumer price index for food away from home rose 0.4% in January, with the index rising 3.1% in the past year, according to the news release.

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