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Grocers slice food prices, but driving to the store costlier

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Daily News-Sun

Prices at grocery stores are dropping. That's the good news.
The bad news is that driving to pick up that dozen eggs or pound of ground chuck is getting costlier by the day.
Gas prices have stabilized over the last few days, but they have risen relentlessly for weeks. Last week, the West Valley saw the largest week-over-week increase in the state with a 13-cent per gallon boost.
On the other hand, a survey of food prices by the Arizona Farm Bureau Federation has found grocery costs creeping lower.
"(Lower) commodity prices are now showing up at the retail level," said Peggy Jo Goodfellow, the federation's marketing manager.
She said declines in the price of food at the farm level can take six to eight months to be reflected in prices at retail stores.
"Things like eggs and meat won't take that long, but for any processed food item, it will take that long," she said. "That's why we're seeing prices going down now."
Sun Citian Barbara Campbell said while she is fortunate, some people have a difficult time financially, and "it might be the decision of transportation or food."
"It's difficult because you need both," she said.
Campbell recently filled her tank for $2.57 a gallon of unleaded gas at ARCO am/pm in Sun City. She noticed the prices increasing over the last month.
"I knew they were going up, and it was only going to be a matter of time," Campbell said.
Charles Davis, a Sun City resident, said people don't have any other choice but to pay the prices.
"If you ask me, this is all up to the politicians, who can really control this all," said Davis. "They have us in the palms of their hands."
The reason for the rise, said AAA Arizona officials, is more complicated than that and involves everything from people driving slightly more than in weeks past to unrest in Iran.
"While the current unrest in Iran underscores market volatility, it is also important to note that the current run up in crude and subsequent fuel prices continues to be fueled by investor optimism, as opposed to actual market fundamentals," said Linda Gorman, public affairs director for AAA Arizona. "While Arizona pump prices remain $1.426 below year-ago levels, prices have increased by more than 65 percent since January, despite healthy supplies and unimposing demand."
"However, this rally can only last so long, considering that it continues to lack the support of supply and demand fundamentals," Gorman said.
As for food prices, the Farm Bureau survey was based on prices for a king-sized barbecue for a get-together of of 10 people. Items purchased included hamburgers, hot dogs, potato salad and and other goods.
This year, the cost for that spread was $50.38, down $52.23 from last year, Goodfellow said.
The only items that went up in price were hamburger, baked beans and watermelon. Declines were recorded for hot dogs, potato salad, sliced cheese, baby peeled carrots, broccoli florets, tortilla chips, salsa, lemonade, milk, hot dog buns and hamburger buns.
A group of condiments including ketchup, mustard and mayonnaise was unchanged.
The comparisons were made with the same items in identical quantities at the same four stores in Maricopa County as last year, Goodfellow said.
Ann Magyar of Sun City West said she has noticed some deals on food prices as the gas prices rise.
"What my husband and I have noticed are more sales rather than decreases in prices, but there have been some in the last few months," Magyar said.
Magyar said she's noticed sales at Safeway and enjoys shopping there because they can receive points for money off gas at the store's gas station.
"It really helps out a lot in the end," Magyar said.
Julie Barker of Sun City Grand also said she's noticed more specials at grocery stores.
"I'm not surprised gas is going up, while food seems to be heading down," said Barker. "That's just the way that it goes."


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