Food Prices Falling in US Stores

It seems as though the recession has created a trickle down effect of pressure that is effecting not only large supermarket chains but smaller grocers as well. With larger supermarkets lowering their prices to accommodate shoppers, independent businesses are feeling the squeeze.

(BBC WorldNews) For the last 12 months, the BBC has been monitoring prices at one Safeway supermarket in central Washington. We look at the price of potatoes, eggs, meat, bread and milk, and we found that at this shop, at least, prices of these goods fell on average by 17% in the past year.

One explanation could be that millions of Americans have lost their jobs in the last year because of the recession, so they have less money and supermarkets are having to try a bit harder to entice their customers in.

That is certainly the case as far as stallholder Tom Calamaris is concerned.He runs a small fruit and vegetable stall at Eastern Market in Washington DC and says his business is really being squeezed by the big supermarkets bringing prices down - something he has not been able to afford to do.

"I just can't do that," he says, "I know a lot of the big businesses can because they make millions of dollars."Admitting he cannot compete, he warns, "Mama and Pop businesses go out of business because the big businesses swallow them up."

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Food Prices Falling in US Stores