Cost of gas down. Beer? Not so much
The Thirsty Beagle has rejoiced at the pump recently. Imagine, only $28 to fill up the tank. It’s like a Christmas miracle come early. On a related note, we’ve all heard how the price of everything from bagels to beer has spiked recently, and we’ve all been told it’s been due to the increasing price of fuel for the delivery of such goods. So now that gas prices are falling like the Baylor Bears’ bowl game chances, shouldn’t we expect the price of our favorite goods to take a similar turn? Not so fast, financial analysts say. They say when food and beverage companies raise prices, like they did when fuel costs skyrocketed over the past few years, they seldom drop the prices back down to previous levels. In fact, while oil plunged more than 50 percent in cost, food and energy prices actually increased by a small margin, according to the country’s Consumer Price Index. Experts say the only thing that may now drive the price of goods down is a good old-fashioned price war. But they warn that since all competitors have raised their prices by similar levels, there’s little incentive to bring them back down.
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