From Keith Good’s farm policy blog, …

“The Bureau of Labor Statistics reported that the Consumer Price Index fell by a seasonally adjusted 0.7 percent in December, its third consecutive monthly decline, after sliding 1.7 percent in November. The so-called core rate, which excludes volatile food and energy costs, was unchanged.

“For all of 2008, consumer prices grew just 0.1 percent while the core rate rose 1.8 percent, the Labor Department reported.”

The Times article added that, “Economists have warned that prices will probably be flat or continue falling in 2009 as the recession drags on and lower energy costs work their way through the ladder of production.”

More specifically with respect to food, Friday’s price report indicated that, “The food and beverages index was virtually unchanged in December, as increases in the indexes for food away from home and alcoholic beverages offset a 0.4 percent decline in the food at home index.

Within food at home, the indexes for three of the six major grocery store food groups declined. The fruits and vegetables index declined 2.4 percent in December, the fourth consecutive decrease, with fresh vegetables down 4.4 percent. The index for dairy and related products turned down in December, falling 0.9 percent after rising 0.4 percent in November. For the year, the indexes for fruits and vegetables and for dairy and related products rose 3.4 percent and 2.7 percent, respectively. The index for meats, poultry, fish and eggs declined 0.5 percent in December, but was up 5.1 percent for the year. The December decrease was driven by a 6.6 percent decline in the index for eggs. The indexes for cereals and bakery products and for other food at home both increased in December. The former index rose 0.3 percent in December and posted an 11.7 percent 12 month increase, while the latter climbed 0.6 percent and was up 9.3 percent for the year. The index for nonalcoholic beverages was virtually unchanged in December and has increased 5.9 percent since December 2007. The index for food away from home advanced 0.3 percent in December while the alcoholic beverages index increased 0.6 percent.”