WHOLESALE FOOD PRICES INCREASE MORE THAN RETAIL

WASHINGTON (FNS) -- Retail food prices in September increased a seasonally adjusted 0.1% against August, well below the 0.5% increase in prices for all retail goods, the Labor Department here reported recently in its Consumer Price Index.

-month retail price gain for food, up 0.8%. Compared to year-ago levels, prices for fruits and vegetables increased 1%.

Retail meat prices declined in September against August, dropping 0.4% for beef and 0.8% for pork. However, compared to September 1999, beef prices last month were up 7.1% and pork prices increased 7.8%. Poultry prices declined for the second consecutive month, down 0.2%, but increased 0.7% since September 1999. Prices for dairy products increased 0.4% for the month and were up 2% from September 1999.

The increase in retail prices for food in September also fell short of wholesale food prices, which for the month increased 0.4% and were up 0.3% from a year ago, according to the Producer Price Index.

Wholesale prices for fresh fruits and melons increased 27.4% for the month, but were down 14.8% from September 1999. Fresh and dried vegetable wholesale prices increased 7.2% for the month and were up 14% over the year.

Wholesale pork prices declined 0.7% for the month and year.