Are Food Prices Really Going Up This Much?
Food prices have been rising. But I just got back from our local produce market to pick up a few items and was floored by what I saw. Examples: romaine hearts $5.99 - typically $2.99; zucchini $2.99 - typically $1 - $1.50; grape tomatoes $3.99 per pack - typically $1.99.
I don't know what you're seeing, but this surprised me. Could this be the rise in retail prices that we haven't seen but were told was coming? Wholesale prices for agricultural prices have risen to - in some cases - record high levels over the last year or so. The theory is it takes time for prices at the wholesale level to find their way to the stores. Stores play a waiting game, especially supermarket chains that buy in bulk and warehouse items - even so-called "fresh" produce which can be held for a period in very cold storage. And a lot of times the wholesale prices just spike up temporarily, so it's not a big deal.
But the little stores buy from markets and they sell what they buy right away and have to mark prices up in response to what they pay their wholesaler.
I did notice some pretty high prices last week at the supermarket, but I just dismissed it as perhaps an anomaly. Maybe it's not. Maybe we're seeing the first signs of prices really going higher for a sustained period. We'll see if these higher prices stick. And the question then is how long with these prices stay high. If it's a long enough time, you've got to wonder how the government will continue to claim that inflation is really low.
One good bit of news: I did find a few fresh items that weren't up that much, so I just bought them and left the expensive stuff for others to feast on.
I don't know what you're seeing, but this surprised me. Could this be the rise in retail prices that we haven't seen but were told was coming? Wholesale prices for agricultural prices have risen to - in some cases - record high levels over the last year or so. The theory is it takes time for prices at the wholesale level to find their way to the stores. Stores play a waiting game, especially supermarket chains that buy in bulk and warehouse items - even so-called "fresh" produce which can be held for a period in very cold storage. And a lot of times the wholesale prices just spike up temporarily, so it's not a big deal.
But the little stores buy from markets and they sell what they buy right away and have to mark prices up in response to what they pay their wholesaler.
I did notice some pretty high prices last week at the supermarket, but I just dismissed it as perhaps an anomaly. Maybe it's not. Maybe we're seeing the first signs of prices really going higher for a sustained period. We'll see if these higher prices stick. And the question then is how long with these prices stay high. If it's a long enough time, you've got to wonder how the government will continue to claim that inflation is really low.
One good bit of news: I did find a few fresh items that weren't up that much, so I just bought them and left the expensive stuff for others to feast on.
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