Food costs will only increase from here
Not exactly good news as we see a touch of relief in the price of gas…
NEW YORK — As prices for crude oil and other commodities ease, consumers have gotten a small dose of relief at the gas pump. But don’t expect less pain at the grocery counter.Food inflation is here to stay — and will probably get worse for some things.
“As long as we’re in this world of expensive oil and commodities, the prices that you’re seeing now in the grocery shelves are not going away,” said Ephraim Leibtag, an economist with the U.S. Agriculture Department who tracks retail food prices.
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August 22nd, 2008 at 4:10 pm
I was watching the news last night and the Labor Dept statistics were quoted that egg prices went up by 60 cents a doz! I figured out that I pay 20 cents per egg!
Egads. A friend told me she pays almost $5 for a gallon of milk.
Everytime I get a trade magazine it talks about wholesale prices continuing to climb-what are your food-costs/margins looking like out there?
August 26th, 2008 at 4:55 pm
ATC:
Funny thing is if you look at STU stores prices not much has changed. Some other franchises I looked at have increased substantially. Seems like STU stores are not willing to pass on costs, which of course is a double edged sword. I did note that stores seem to have a higher percentage of the cheap stuff now…but if our experience is an example, consumers do recognize what they are getting. I suspect that practice will be problematic in the long run.
George
August 27th, 2008 at 3:24 pm
Hey ChefG-Not really so funny-Problematic? You bet! Especially when you couldn’t make ends meet before the food prices when nuts…