Remember last year when all the food manufacturers were raising prices and shrinking portions because the cost of raw materials had risen dramatically? Now that costs are down, they’re reluctant to lower prices. It’s a good time to be in the food business.
Wegmans, an “upscale” grocery chain with stores in 5 Mid-Atlantic states, is cutting prices to stay competitive during the post-Wall-Street apocalypse.
The New York Times has an interesting article today about the rising specter of deflation — in which a lack of demand causes prices to fall. Falling prices sounds like a good thing for consumers who have been battered with rising costs over the past year — but experts agree — deflation is nothing but bad news.
As the cost of raw materials rises, its not just the food at the grocery store that’s getting smaller and more expensive—restaurants of all kinds are having to do more with less.