Food costs steady despite drop in fuel prices

As gasoline crossed the $4 mark this summer, grocery stores were some of the first places consumers saw prices rise. Although the price of fuel has declined considerably since then, the prices of many food items have remained relatively constant.

"Prices always go up faster than they come down," John Rand, a grocery team leader at researcher and consultancy Management Ventures Inc. in Cambridge, tells the Boston Globe. "They raise prices in anticipation of costs. They very rarely lower them in anticipation of savings."

In addition, the costs associated with fuel and transportation make up only a portion of what consumers are actually paying for when they purchase an item from the grocery store. Meat and produce, for example, are also subject to variations in supply that are dependent upon weather and other unpredictable natural events.

Other items that have a very long shelf life, such as soap and paper towels, are dependent upon contracts between sellers and manufacturers. These contracts are often negotiated before either party knows what fuel or transportation costs will be at the time of delivery.

Just because grocery prices have remained relatively constant does not mean that there are not bargains, however. Stores still need to move their merchandise, and in response to weakening sales figures, more manufacturers may be offering coupons to entice shoppers.

"We also have thousands of temporary price reductions every single week," Judy Chong, spokeswoman for Shaw's, says. "If you just spend some time clipping coupons or you pay some attention, you can get some deals out there."

--Bridget O'Sullivan