The Consumer Price Index (CPI) for supermarket food prices continues to fall on an annual basis

The Consumer Price Index (CPI) for supermarket food prices continues to fall on an annual basis, while lower prices for beef are sending grocery sales for protein measurably higher, according to separate U.S. government and industry reports.The CPI for food prepared at home fell nearly 2 percent on a seasonally adjusted, year-over-year basis, in the 12 months ending in January, the U.S. Bureau of Labor Statistics reported. Much of the decline can be traced to the 4.9-percent decrease in the fruits and vegetables index over the year that ended January 2017, the agency said. The monthly CPI specifically for meats, poultry, fish and eggs – which had declined for 26 consecutive months – rose 0.7 percent, mostly because of a 14.3-percent increase in the index for eggs during the month.Meanwhile, lower meat prices and more promotions and sales in supermarkets have fueled consumer appetite for meat, according to an official at the National Cattlemen’s Beef Association. The organization noted that U.S. consumers took advantage of lower “feature average prices,” which were down 7.6 percent. Consumers increased their purchases of beef on sale to 31.4 percent of beef purchased in the 52 weeks that ended Dec. 31, 2016 compared with 26.8 percent of purchases in same period in 2015.“Wholesale prices and ultimately retail prices adjusted downward, improving margins for retail operators and affordability for consumers,” said Alison Krebs, director of market intelligence at the association. She added that overall meat prices fell by more than 15 percent last year compared with the mid-2015 peak meat prices.Krebs also noted that the share of total beef purchases for organic, naturally raised, grass-fed or antibiotic-free beef is holding steady at 4.2 percent of total retail beef sales.