Wholesale Food Prices Dipped In July

Food prices at the wholesale level fell 0.5% in July, according to the U.S. Bureau of Labor Statistics and the National Restaurant Association. The declines come on the heels of strong 1.4% and 1.7% gains in May and June, respectively.

The increases in May and June followed six consecutive months of declines beginning in November 2014. As a result, overall wholesale food prices stand 2.1% below the level a year ago. It was the fifth consecutive month average prices were lower than 12 months prior.

The declines follow a period of strong price increases during the first half of last year when beef, pork and dairy prices, among other commodities, skyrocketed. But pork prices have fallen 33% from a year ago, when supplies were being curtailed during a viral outbreak that killed millions of piglets. Wholesale beef and veal prices fell 1.9% in July, following four months of gains. Average prices for beef and veal remain 2.1% higher than a year ago, following a year that saw prices surge nearly 30%.

Wholesale egg prices fell 33%, as flock culling to limit a spread of avian flu began to play out. Still, wholesale eggs prices remain 70% higher than a year ago. Fruit and vegetable prices fell moderately, as they often do during the summer.

Consumer prices for July, including menu price increases, will be reported Aug. 19.