Food Prices Increase

      Prices in food have been rising tremendously over the past couple of months. Many Americans, scared about this raise in food and about high unemployment, have switched supermarkets, and have avoided going out to eat in order to save money. The price in cereals have raised by 5% in the recent months and companies such as Kraft Foods, General Mills, Safeway, have been having to increase process due to the increase in demand. “Costs are being driven by growing demand for meat in China, India and other emerging markets.” Food prices are all affected by this for if you think about it, grain prices go up, which in turn raise the cost of steak, chicken, bread and pasta. Kevin Srigley, the senior vice president at grocer Giant Eagle Inc., states, “ There is a much stronger sensitivity to price than we have ever experienced, but there are some areas you cant afford not to pass on those costs.”

         
        I agree with Srigley when he states that because it is true- it makes sense that prices are raising if the prices of ingredients are raising as well. Even though companies have to make their pricing reasonable, they still have to sell their goods based on the fact of how much they are spending on getting those goods. Do you guys agree with me on that? Or do you think that even though the demand is high, they should manage to price their goods at the lowest price possible? 

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Posted by Tania Dabdoub