Prices Of Whole Foods Goes Up

Although the price increase hasn't affected people yet, consumers of whole foods should expect to pay more for their goods in the near future. Since producer prices have increased significantly, it has caused wholesale prices to increase as well. This has been the biggest rise since June 2009. U.S. wholesale prices increased all over the nation due to the rise in energy costs and in everyday products such as grain and coffee. Prices of vegetable increased by 10% and beef and veal prices rose by 5.4%. Analysts are saying that consumers won't feel the increase right away and that supermarkets will include the increase into their prices slowly. Even though food prices have been growing higher this year, grocery stores have decided to wait on the price increases because "they don't want to scare price-sensitive customers." Michael Keara, an equity analyst for Morningstar, said "...expect to see supermarket prices edging up in six to nine months."

My View: 

With people having so little money to spend these days, rising prices of essential food items might just make matters worse. Unless the price increase doesn't affect people dramatically, consumers might start to abandon their usual supermarkets and look for cheaper deals on the foods they buy most. Everyone knows the economy is in a fragile state right now and increasing prices is the last thing people want to hear about right now. I think when people find out that there are prices increases on certain items, they will refuse to pay that much for something they have been paying for a lot less. Unless the price increases a fair amount, supermarkets can expect to see a decline of shoppers in the near future.

http://financiallyfit.yahoo.com/finance/article-113688-11401-3-supermarkets-may-sneak-in-price-increases?hp=true?ywaad=ad0035&nc