In terms of food prices in particular, what I’ve heard is that prices at the grocery store and in restaurants depend much more on the cost of labor than on anything else. Grocery stores themselves operate on razor-thin margins, and changes in the price of wheat and other “raw materials” have only tiny effects on grocery store prices. Most of the actual expense of putting food on grocery store shelves comes from the cost of food processing (turning wheat into bread, cutting up dead animals into cuts of meat, etc.), which is a fairly labor-intensive industry.
In terms of food prices in particular, what I’ve heard is that prices at the grocery store and in restaurants depend much more on the cost of labor than on anything else. Grocery stores themselves operate on razor-thin margins, and changes in the price of wheat and other “raw materials” have only tiny effects on grocery store prices. Most of the actual expense of putting food on grocery store shelves comes from the cost of food processing (turning wheat into bread, cutting up dead animals into cuts of meat, etc.), which is a fairly labor-intensive industry.