Posted in Economy by Ken Thomas
Wapo claims: "Supermarket prices are plunging as the global downturn drives down the cost of staples such as wheat, corn and milk and grocers fight for the wallets of penny-pinching consumers"
Works for me. True for you?
Haven't really seen prices "plunging" yet. But even if they do, it's really unlikely they'll drop below what they were a couple of years ago, before fuel prices shot through the roof.
For prepared foods, the cost of materials isn't usually a big component. It's preparation, packaging, and transportation. All three of which require both manpower and energy. Dropping costs of raw materials will not significantly affect the wholesale price of most things the buyer sees on the shelf.
I'll bet that if prices are dropping through the floor anywhere, it's an effort to push cash flow while reducing inventory somewhere in the supply chain.
If the prices don't go up then they are dropping based on the weakening of the dollar via inflation. With that said, i have not seen anything go down and I doubt they will.
Milk is a little cheaper. Pork has been cheap to. Overall, I see little change.
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