Food Prices Head Toward Record Low

The U.S. is on track to post the longest stretch of falling food prices since 1960.

The trend is fueled by an excess supply of dairy products, meat, grains and other staples and less demand for such products abroad due to the strong dollar.

Nationwide, the average price of a gallon of whole milk was down 11 percent to $3.06 in July compared to July 2015; the price of a dozen large eggs fell 40 percent to $1.55 in the same period.

Those great bargains at the grocery store are spreading pain across the Farm Belt. Farmers are getting less for raw milk, cheese and cattle, forcing them to slash spending, which further complicates the bottom line for equipment manufacturers.

Economists and food analysts say the decline in supermarket prices could soon surpass the nine months of year-to-year declines experienced in 2009 and 2010—the longest stretch since 1960, according to the Bureau of Labor Statistics.

Source: Wall Street Journal