If a barrel of oil is cheap, why are food prices still high?
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Just saw that oil is now $44 per barrel, which will really help everyone at the pumps in this time of need. But why are food prices still at a record high?
I do recall last year when Gas was $4 a gallon, food companies started shrinking packages and increasing prices in order to stay in business. Well guess what, gas is now at an average of $1.75 and food is still ridiculous. Food companies should raise and lower prices based on the state of the economy. Stores like Walmart are up 5% in sales due to the fact people cannot afford name brands anymore.
I found these really great chips last night in a “snack size” I picked up the bag and it was very light. I squeezed the bag a little and realized only 1/8 of the tiny bag had chips in it. 7/8’s air! Yes yes, contents may settle after packaging, but I am sure the company had no intention of giving me more than that. So that was frustrating, but it got worse - the large bag was $4 and only half full.
I sputtered about the price and settled with a bag of “store brand” cheese balls. $1, and the bag was filled right to the top with the cheesy ball goodness.
Does the consant increase in food prices make anyone else angry?
December 5th, 2008 at 8:37 am
You bet, especially when you consider that only 20% of retail food prices is accounted for by what farmers are getting paid for their crops. This is all about the big food companies — Kraft, Kelloggs, etc. refusing to pass through to consumers the lower cost of fuel and feed — both of which are way down from this past Spring. Oil was $147 a barrel then; less than $50 today. Corn was $8 a bushel; today its close to $3.50.