Source: CNN Business
You might not be excited about paying higher prices for meat and vegetables, but your grocery store is thrilled.
The rising prices for staples like milk and pork affect grocery stores too, as they have to pay more to their suppliers. But while they are raising prices under the guise of increasing supplier costs, they’re adding a little extra on top of that.
When grocery stores’ costs rise, stores will “mark up the full rate of inflation plus a little bit more,” said Burt Flickinger, the managing director of retail consultancy Strategic Resource Group. For example, if the price of meat that a store pays to its suppliers goes up 6 cents a pound, the store might raise the price it charges for that same meat by 10 cents.