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Food Cost Review, 1987

Author

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  • Dunham, Denis

Abstract

Food prices, as measured by the Consumer Price Index, increased 4.1 percent in 1987, compared with a 3.2-percent rise in 1986. The larger rise reflected a 4.3-percent increase in prices of food bought in grocery stores for consumption at home compared with a 2.9-percent rise in 1986. The prices farmers received for commodities, as measured by the farm value of USDA's market basket of foods, rose 2.3 percent. Farm value of foods had dropped 8 percent the previous 2 years. The farm-to-retail price spread of USDA's market basket of foods rose by 6.2 percent, partly reflecting higher food industry labor costs from rising employment. Higher advertising, packaging, and other food marketing expenses also contributed to the rise in the farm-to-retail price spread.

Suggested Citation

  • Dunham, Denis, 1988. "Food Cost Review, 1987," Agricultural Economic Reports 305722, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:305722
    DOI: 10.22004/ag.econ.305722
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    Cited by:

    1. Harwood, Joy L. & Leath, Mack N. & Heid, Walter G., 1989. "U.S. Milling and Baking Industries," Agricultural Economic Reports 305463, United States Department of Agriculture, Economic Research Service.
    2. B. Senauer, 1990. "Major Consumer Trends Affecting The Us Food System," Journal of Agricultural Economics, Wiley Blackwell, vol. 41(3), pages 422-430, September.

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