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Food Cost Review, 1989

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  • Dunham, Denis

Abstract

Food prices, as measured by the Consumer Price Index, increased 5.8 percent in 1989, the largest increase since 1981. Higher farm prices and costs of processing and distribution both contributed to the price increase. The prices farmers received for commodities, as measured by the farm value of USDA's market basket of foods, rose 6.7 percent. This was only the second time in the decade that the rise in farm value equaled or exceeded the rise in food prices. The farm value share of the food dollar spent in grocery stores in 1989 was 30 percent, unchanged from 1988. The farm-to-retail price spread of USDA's market basket of foods rose 7.1 percent, reflecting higher prices of inputs, such as labor and packaging, used by the food industry.

Suggested Citation

  • Dunham, Denis, 1990. "Food Cost Review, 1989," Agricultural Economic Reports 305725, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerser:305725
    DOI: 10.22004/ag.econ.305725
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