Cost of Groceries Rises in Missouri

First posted on 10-17-2007

Fuel prices and heating expenses are not the only costs going up for Missouri residents. A farm industry survey found that Missourians paid a much bigger grocery bill in the third quarter of 2007 compared to the same period last year.

Prices are up over $4 from the same period last year, at least in part because of higher commodity prices for items like flour and cereal.

The survey was conducted by the Missouri Farm Bureau and is based on the average prices of a 16 basic food items. The 16 items represent a cross-section of commodities including meat, dairy and dairy products, fruits, vegetables and grains.

Of the food items surveyed the past quarter, seven increased in price while nine decreased. While the Missouri average price of $43.86 for the basket of goods was higher than last year’s $39.76, it was still well below the national average of $44.03 for the same items.

Some economists point to a rising demand for grains, like corn, used to make ethanol and higher energy costs that are passed along to consumers as culprits for rising food prices.

Third Quarter 2007 vs. Third Quarter 2006 Major Price Changes:

Largest price increases

Gallon of whole milk: $3.71 vs. $2.68 (up 38%)
Cereal, 10 ounces: $3.39 vs. $2.36 (up 44%)
Flour, 5 pounds: $2.72 vs. 87 cents (up 213%)

Largest price decreases

Bread, 20-ounce loaf: $1.70 vs. $2.59 (down 34%)
Bacon, per pound: $3.35 vs. $3.97 (down 16%)
Apples, per pound: $1.44 vs. $1.89 (down 24%)