Rising Food Prices Again

At least some people (economists) in the media are talking about the rise in food prices and how food businesses are likely to try to sneak extra price hikes in at the same time as the price of the commodity price is increasing.

I’ll make it simple for you to try to understand. Say commodity price is 25% of sale price, and there is a 20% rise in commodity price … then there should only be a 5% rise in actual sale price … not a 25% rise in sale price.

It happens, and of course when commodity price comes down, then the sale price will probably not come down after that! And do we all remember back when we changed to the Euro in 2002 (I think) when the price of everything went through the roof when we weren’t able to quite gauge the value of the new money in our pockets.

From: The Irish Independent Newspaper (National-News section)

And further increases are almost certain to nudge up Irish inflation in coming months, as everything from breakfasts cereals to grain-fed chicken and pork looks likely to rise in price.

However, economists here have warned that other food businesses might now piggyback on these price hikes by upping their own without due cause, on the basis that everyone else is doing it, why shouldn’t they?

The usual appeals to consumers to shop around for the best deal can’t work when the supermarkets match each other so precisely on the price of staples — meaning that calls for the Competition Authority to investigate the uncanny similarities of prices amongst the big operators have never been more crucial.

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