Retail prices for eggs, milk, chicken breasts and bacon are now significantly lower than they were a year ago, as the US recession continues to run its course.

In a year, the average price for the market basket of foods is down about 6pc, but retail egg prices are down 26pc, milk is down 22pc, chicken fell 19pc and bacon dropped 11pc.

The foods that fell in price the most are the least processed items in the market basket.

In the latest quarter, biggest drops came for boneless chicken breasts, eggs, Russet potatoes, sliced deli ham and whole milk.

Ground chuck steak, sirloin tip roast, flower, bacon and toasted oat cereal also saw a drop.

The American Farm Bureau Federation (AFBF) keeps tabs on a market basket of food items to have a better understanding of the food prices consumers pay at the local grocery store.

And in the latest report from the organisation, those prices are down slightly for a third consecutive quarter, based on data collected in May.

The informal survey showed the total cost for 16 food items was down about 2pc from the first quarter of 2009.

Of the 16 surveyed, 10 fell, five rose and one remained the same compared to prices paid the previous quarter.

AFBF reports that these softer prices show consumers are seeing some relief at the grocery store - and they're having an impact through the supply chain back to the US farmers.