Food prices continue to fall with the United States on track this year to post the longest stretch of falling food prices in more than 50 years. At-home food prices declined 1.6 percent on a seasonally unadjusted basis in the 12 months through July, according to the Bureau of Labor Statistics. This is good news for the consumers at the checkout line but is putting a financial strain on farmers and grocery stores.
The trend is being fueled by an excess supply of dairy products, meat, grains and other staples and less demand for many of those same products from China and elsewhere due to the strong dollar. Lower energy costs for transportation and refrigeration also are contributing to sagging food prices, economists say.
