Rising Gas Prices Coinciding with Grocery Price Hikes

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Posted: 5:54 PM Apr 24, 2008 Rising Gas Prices Coinciding with Grocery Price Hikes Rising gas prices all over the nation are also having a big impact on many other industries. And one place seeing some of the biggest effects are grocery stores. Reporter: Mikel Lauber Email Address: mlauber@wsaw.com

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Rising gas prices all over the nation are also having a big impact on many other industries. And one place seeing some of the biggest effects are grocery stores.

A new Gallop poll shows grocery prices are causing hardship for nearly half of Americans. But the rising prices are also a challenge for smaller grocery stores.

Jason Fritsche, the owner and manager of Quality Foods I.G.A. says prices have risen almost six percent just this year. And because they aren't able to buy in huge bulk like some of the large grocery chains, it takes extra work to keep prices competitive. "Sometimes it's just buying smart”, says Fritsche. “You look at things and the market, and you buy before costs go up. You look for specials on the market that aren't the ones the big stores will jump on."

He says besides affecting transportation costs, oil prices are hiking up the cost of petroleum-based packaging for many materials, and the demand for ethanol is also forcing prices of corn-based products up.

Fritsche says they're seeing a definite shift toward shoppers buying generic brand products, and buying only what's necessary.

The supply of certain products is causing problems for some large chains as well. Because of supply problems overseas, the prices of rice products have risen about 70% this year, and stores like Sam's Club have been forced to ration the amount of some products they're allowing customers to buy.