RIght. Because the cost of production will go down when the costs for labor increase.
Transportation as a percentage of food prices is so low that changes in fuel prices has almost no effect on the retail price.
Historically, a 20% increase in fuel costs results in a less than 1% increase in retail food prices.
Transportation costs are about 9% of retail food cost.
Fuel is about 25% of shipping cost. That means if the price of fuel is cut in half, the savings for the consumer would be about 1% of the cost.
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