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Posted: 6:00 a.m. Thursday, April 25, 2013

Food prices on the decline

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By Clark Howard


Shrinking portion sizes have been so much a part of what we've seen the last few years. But that could be about to change.

Much to the upset of guys everywhere, Budweiser is introducing a new can in the shape of its classic bowtie logo. The new can also shrinks the size from 12 ounces of brew to 11.3 ounces -- for the same price.

Why would anyone pay for fancier version of a can for less beer?

Unfortunately, this has been a tried-and-true tactic during the recession to the point that it's created a backlash.

Ben & Jerry's says on its pints 'Still a pint' because Haagen-Dazs reduced its size from 16 to 14 ounces. So Ben & Jerry's uses it as product differentiation to highlight that Haagen-Dazs cheaped out on you!

Fortunately, there's great news on the food front. The food price forecast is for lower prices. As an economist told The Financial Times of London: "Prices will relax for a couple of years."

What happened on farms around the world is because of a cycle of high prices for food, a lot more land was planted and those crops are now coming in strong. That's not good for the financial outlook of farms, but it is good for food processors, supermarket, and you.

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