Low price growth signals tight financial times for grocery

“As prices fall or stay the same for many grocery items, consumers will rejoice — or they may not notice. But grocers notice in a big way. Already low margins have shrunk even further, and there is less room to cut costs in order to stay competitive. Last month’s prices only increased in one sector. They decreased 1.3% for nonalcoholic beverages, 0.6% for dairy, 0.4% for produce, and 0.2% for bakery products, according to BLS statistics. The increase in meat, poultry, fish and egg prices just barely pulls grocery stores into having net higher prices.”

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