What Goes Up Must Come Down--Unless It's Prices

[jthomas666]

The cost of food is down, but grocery bills are still up. Here's why

Why aren't prices falling at the grocery store? When food producers started raising prices a few years ago, they blamed their own costs, including higher ingredient prices. But ingredient prices have actually been on a downswing for months, and individuals are still paying more for food.

www.cnn.com

Why aren’t prices falling at the grocery store? When food producers started raising prices a few years ago, they blamed their own costs, including higher ingredient prices. But ingredient prices have actually been on a downswing for months, and individuals are still paying more for food.

In part, it’s because food producers have other expenses that remain pricey, like labor and transportation, compared to a few years ago.

But critics and industry experts say the cost increases gave food makers cover to hike prices above what those increases called for, boosting profits and correcting what they saw as too-low prices in previous years.

 

[twofbyc]

That’s what money does - just like drugs; it makes you want more and once you get it, you ain’t ever giving it back. Government, oil companies, insurance companies, pharma - they demand more and give less in return.
That’s the American Way.

 

[Bamabuzzard]

A friend of mine works for Sysco Foods and he was the one who told me in November 2020, months before food prices started taking huge price hikes, they'd told their customers prices would rise by 30-35% by the middle of 2021, and they did. I spoke with him a while back and asked when food prices were coming down since fuel had gone down and things had gotten more back to normal.

He said, "they're not coming down anytime soon". The reason? Profits. They are making record levels of profit and though their costs have come down they are taking advantage of people still buying at the levels they did when prices were lower.

 

[TexasBama]

I guess the Invisible Hand sat this one out

 

[92tide]

I guess the Invisible Hand sat this one out