Investing.com — Food prices, while no longer rising as rapidly, is expected to remain at the higher level than past, and a meaningful decline may be unlikely, according to UBS analyst Paul Donovan.
Most of the cost consumers pay occur after food leaves the farm. For instance, in the UK, farmers recently received only about a third of the retail price for milk, with processed food margins being even smaller. This means any price declines would depend on cost reductions further down the supply chain.
One possible source of savings is labor costs. The adoption of self-service checkouts, for example, effect