When Will Things Start Looking Up?
source: http://www.usnews.com/blogs/erbe/2008/12/02/gas-prices-drop-but-food-prices-remain-high-why....
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- Katanajon
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I've been going into the grocery stores I frequent with high hopes recently, only to be disappointed. Gas prices are dropping—costing half what they were less than a year ago. And when food prices spiraled up earlier this year, food manufacturers explained that as gas prices rose, transportation costs rose with them.
So, I wondered, shouldn't food prices fall now? If you've been wondering why, too, I offer up a couple of possible explanations. First, from the Danville, Ill., Commercial News:
. . . the fuel price drop is almost one-sided. While gas moves downward by jumps, the price of diesel is taking a much conservative route. Recent prices in Danville averaged just under $2.90 per gallon earlier this week.
I understand about the difference between diesel and gas. Yes, diesel is staying persistently higher than gas fuel. But it's still down from highs that hovered close to $5 per gallon earlier this summer.
Another possible explanation: Fertilizer is petroleum-based. Crops this summer were planted when gas and diesel were much higher, as was fertilizer. So farmers still paid more for base costs this planting season, even though transportation costs to bring their products to market have dropped.
Here's one final thought, courtesy of the Minneapolis Star-Tribune:
Our problem started with oil prices but continues because of the terrible damage which occurred. Couple with that the World's condition and it doesn't look to good. This makes one realize how good we really had it.
So, I wondered, shouldn't food prices fall now? If you've been wondering why, too, I offer up a couple of possible explanations. First, from the Danville, Ill., Commercial News:
. . . the fuel price drop is almost one-sided. While gas moves downward by jumps, the price of diesel is taking a much conservative route. Recent prices in Danville averaged just under $2.90 per gallon earlier this week.
I understand about the difference between diesel and gas. Yes, diesel is staying persistently higher than gas fuel. But it's still down from highs that hovered close to $5 per gallon earlier this summer.
Another possible explanation: Fertilizer is petroleum-based. Crops this summer were planted when gas and diesel were much higher, as was fertilizer. So farmers still paid more for base costs this planting season, even though transportation costs to bring their products to market have dropped.
Here's one final thought, courtesy of the Minneapolis Star-Tribune:
Our problem started with oil prices but continues because of the terrible damage which occurred. Couple with that the World's condition and it doesn't look to good. This makes one realize how good we really had it.
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- Culture
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- Culture, History, Current Events, Common Sense, 4 more
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Nancyf
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Na, it's either just the crooked grocery men or it will take a while with cheaper gas prices for it to 'trickle' down on us low caste folks.
- 4 years ago
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Nancyf
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Katanajon
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Jahbini has answered correctly again!!! And....you have just won 3 gallons of Gasoline, 2 ears of corn, and a years subscription to National Review.
- 4 years ago
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Katanajon
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samthesixth
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I agree jahbini. We could all grow a little more of our own. Tastes great and healthy too.
- 4 years ago
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samthesixth
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jahbini
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Victory gardens. I think victory gardens are part of the answer.
more self-sufficiency.
Maybe we can learn to support our neighbors again. We have kind of run into a brick wall by leaning too much on big business for everything.
- 4 years ago
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jahbini
