Fluctuations in input costs that forced increases in food manufacturing costs and retail prices in 2008 have fallen; however, food-price inflation remains a long-term risk, according to Willard Bishop’s 2009 "Future of Food Retailing" report.
As reported by MarketingDaily, Bishop managing partner Jim Hertel said the jump in input costs seen in last year's first half deflated suddenly when the economic crisis "knocked the floor" out of many commodities prices; however, some up-tick has been seen again during the past three months. He said no one can say whether that uptick will continue in the short term, many of the fundamental dynamics underlying the cost/price uptrend pattern that was in place prior to the onset of the economic crisis have not changed.