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TD:Falling gas, grocery prices may continue
 
Lower prices at the pump and in the grocery aisle are expected to continue during the coming weeks.

Independence Day travelers found gas prices about a nickel per gallon cheaper than the previous weekend around Alabama.

Many backyard chefs around the state found the chicken, Boston butts and ground beef they cooked on the grill during the weekend cheaper than in early spring.

Declining fuel costs are playing a role in cheaper grocery prices, said Melissa Martin, a spokeswoman for the Alabama Farmers Federation In Montgomery.

“As fuel prices go down, so do transportation costs for groceries and other items” Martin said. “Those savings are typically passed on to the consumer.”

In addition to lower costs for transportation, increased availability of tomatoes and other produce is helping drive down the price of many food items, Martin said.

A recent survey by the Montgomery-based Farmers Federation found the average cost of 20 basic market basket items was $58.41, up 38 cents or 0.65 percent since April.

Meat prices were the major factor in the slight increase for the groceries used in the survey. T-bone steaks increased 37 cents to a statewide average of $8.68 a pound; bacon increased 27 cents to $5.72 a pound.

Meanwhile, chicken breasts were down 18 cents to $2.10 a pound, Boston butts were down 7 cents to $2.07 per pound and ground beef was down a penny per pound to $2.87.

Much of the savings came in the produce department.

Tomatoes were down an average of 52 cents per pound to $1.79 a pound. Lettuce was a nickel cheaper per head at $1.53.

The volunteer shoppers who conducted the market basket survey June 1-10 found the average price of the 20 items used in the monthly price checks averaged $55.96 in northwest Alabama, $56.99 in northeast Alabama, $59.83 in central Alabama and $61.58 in south Alabama.

Martin said if fuel prices continue to fall, so could the price of groceries.

The fuel price tracking website GasBuddy.com reports regular unleaded gasoline in Alabama cost about 15 cents per gallon less than a month ago, but about 84.2 cents per gallon more than year ago. The average prices for regular unleaded nationwide is about 20 cents per gallon less than a month ago but 84 cents higher than this time in 2010.

Clay Ingram, spokesman for AAA-Alabama in Birmingham, expects fuel prices to continue falling.

“Our demand for gasoline is very weak but our supply is very strong,” Ingram said. “That is a recipe for lower prices. There is no reason for gasoline prices to not continue to come down. Hopefully we will see prices continue to fall for the next few months.”

Dennis Sherer can be reached at 256-740-5746 or dennis.sherer@TimesDaily.com.
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