If supermarket prices start to rise, and as fuel becomes ever more expensive, theoretically, the market should take care of the problem. As prices rise, alternatives such as farmers markets and box schemes will become relatively more affordable, breaking the supermarkets' price-driven monopoly.kenneal - lagger wrote:The argument isn't a red herring because the whole buyer/seller relationship has changed in recent years. As production has gone from relative over supply to relatively balance supply/demand the marketing has gone from a very broad market to virtual monopoly purchasing by the supermarkets.
Consumers have supported the low prices of supermarkets by using the car to travel to the superstores. This has resulted in the demise of local stores. With the monopoly position enjoyed by supermarkets and the advent of expensive fuel the consumer will now suffer as supermarkets will not have much competition and food prices will start to rise as supermarkets find that they have a captive local audience.
Of course, it would help if a more level playing field could be established, and supermarkets weren't given such an easy ride by the planning authorities.