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Old 11-05-2008, 10:01 PM
 
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So now that that gas prices have fallen sharply compared to the last 6-8 months, why are food prices still so high? And why haven't air fares come down either???
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Old 11-06-2008, 07:00 AM
 
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I've seen a bit of a decrease in food prices at the supermarket here in KC but they still have not decreased to the point that is commensurate with the decrease in gas and diesel prices. I suspect the declining value of the dollar and price gouging has something to do with it.
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Old 11-06-2008, 07:07 AM
 
Location: Where the sun likes to shine!!
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Quote:
Originally Posted by olderandwiser456 View Post
So now that that gas prices have fallen sharply compared to the last 6-8 months, why are food prices still so high? And why haven't air fares come down either???
I was wondering the same thing. The only thing that has gone down in my area is milk and eggs. Everything else is very high. Even a sale price doesn't seem so good
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Old 11-06-2008, 07:16 AM
 
Location: Orlando
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It's called the trickle down affect.

Airlines have already purchased the fuel at the higher rate. Once that fuel has been used and IF gas prices stay low, you'll see the rates go down.

Same with the food. The food in the stores now, with the exception of fresh, were shipped at the higher rate. Like the airline rates above, once the new shipments come in at the lower rate, the prices should reflect that.
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Old 11-06-2008, 09:19 AM
 
Location: Omaha
2,716 posts, read 6,214,776 times
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Quote:
Originally Posted by Kali's Grandma View Post
It's called the trickle down affect.

Airlines have already purchased the fuel at the higher rate. Once that fuel has been used and IF gas prices stay low, you'll see the rates go down.

Same with the food. The food in the stores now, with the exception of fresh, were shipped at the higher rate. Like the airline rates above, once the new shipments come in at the lower rate, the prices should reflect that.
Bingo! The unfortunate part is that many of these companies locked in at rate peaks. Funny how prices drop suddenly afterward, huh?
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Old 11-06-2008, 09:57 AM
 
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someplaces is high plus where you do be at ecomics is going up and down because that war
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Old 11-06-2008, 10:04 AM
 
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It should be noted that diesel prices haven't dropped as much as regular gas prices.

Also, the other prices that rose along with fuel prices, like truck parts, and service costs, have not come down.

And when prices rose so sharply, many, many small companies closed their doors. Not so much competition, now, so not as much incentive to lower transportation costs.

Altogether, this means transportation costs have not and will not go down as much as consumers think it should based on price at the pumps. Food costs won't go down because transportation costs aren't going down.
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