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Abstract

Grocery store food prices generally rise each year. However, in 2016, retail food prices actually fell 1.3 percent and fell again in 2017 (0.2 percent). These back-to-back years of deflation helped lower the 20-year moving average for grocery store price inflation from 3.6 percent in 1999 to 2.0 percent in 2018. ERS researchers identify the multiple factors contributing to recent retail food price deflation.

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