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Abstract

Retail grocery food prices increased 3.8 percent in 1984, compared with a 2.1- percent rise in 1983. The larger rise reflected tighter supplies of some farm products, higher farm prices, and a bigger rise in the farm to retail price spread. Food price increases for both years were much weaker than in recent years, and the share of income going for food continued downward. The farm value of USDA's market basket of foods rose 5.3 percent in 1984, following a 2.2-percent drop a year earlier. The farm-value share of a dollar spent at foodstores rose to 34 percent from 33 percent. The farm to retail price spread of USDA's market basket of foods rose by 3.2 percent. Food industry marketing costs increased at a moderate rate, largely because of a relatively small rise in wages and salaries of workers.

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