Chains, retailers struggling with how much consumers can take
(NEWSER) - Despite low overall inflation, the price of basic foods is rising, presenting food companies with a dilemma: do they let rising costs erode profits, or raise prices while demand remains weak? Milk, beef, coffee, and sugar have all seen price spikes, driven by growing demand in China, India, and developing economies, the Wall Street Journal reports. The US consumer price index—minus food—rose only 0.8% over the year to September, while the food index rose 1.4%, and is expected to rise to 2%-3% next year. More»
