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Why are grocery prices staying high?

November 21, 2008

I’ve long joked that it’s impossible to go to the grocery store and not spend $50. It seems to be the magic number.

Lately the magic number has risen a bit. During the summer months when gas prices were sky high it didn’t occur to me to really question the higher cost of groceries. After all, it costs money to transport those groceries to my local store, so it made sense that if the cost of gas was high that would be reflected in the cost of groceries.

Here’s the thing: Gas has dropped by about $1.70 a gallon. Prices in the grocery store haven’t dropped.

What’s going on?

MSN Money ran an article that explains why food prices are still high. It’s pretty complex and is based on several factors.

You can read the whole article here, but in short here’s why food prices haven’t fallen:

·        Summer oil and fertilizer prices are still factored in to the cost of products.

·        Contractual obligations between producers and providers (like oil providers).

·        Speculation about prices in the industry.

It looks like it may be awhile before grocery prices really decline. In the meantime, keep planning your meals and shopping trips in advance, clipping coupons, watching for sales, and making some meat-free meals to keep your grocery bills as low as possible.

Do you have suggestions to reduce grocery costs? If so, please share them.

Written by Lauralynn Schueckler · Filed Under Misc. 

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