Gas Prices are Down, so Why Aren't Grocery Prices?Posted: Updated:
PASCO, Wash-- It seemed like everything was looking up. In the past 3 months, the average cost of gas has dropped two dollars.
And yet every time the grocery list begs to be taken care of, your bill soars to record highs. So what exactly then is driving these high grocery prices?
"What happened was the dollar fell and made food to foreigners inexpensive," says CBC Economics Professor Dean Schau. "If foreigners are buying our food, it bids the price up."
Add to that the slower rate the cost of diesel is falling and you've got a shopper's nightmare. Studies show virtually all food costs have risen. From flour up 13 cents, bread up 9 cents, to apples up 46 cents per pound, leaving customers fed up
"It's really affecting our budget," says one shopper. "We've really tightened up."
"It's about $400 just to buy everything we need besides the meat," says one mother of three. "And the meat is $200-300."
"Yea, I'd like them to come back down, but what are we going to do about it?" asks another shopper. "Fed up? Yeah."
The good news is the exchange rates are looking better and Schau says the price of groceries will likely go down, even though that may take months.
"I would think that hopefully food prices, which have been a real drag on household budgets, will get better," says Schaub.
But like our groceries, it comes at a cost. Economists say gas will likely go back up.