DATE: Friday, March 14, 1997                TAG: 9703140002
SECTION: LOCAL                   PAGE: B10  EDITION: FINAL 

TYPE: Editorial 

                                            LENGTH:   57 lines

FOOD PRICES STEADY: BELIEVE IT OR NOTALTHOUGH SOME FOOD PRICES HAVE DROPPED IN RECENT YEARS, MANY SHOPPERS BELIEVE PRICES ARE SOARING.

Grocery prices haven't risen much in recent years.

No kidding. They really haven't.

For a four-year period that ended last September, the top 100 packaged-goods categories (excluding meats, fresh vegetables and fruits) rose a mere 2 percent a year, according to a national study of supermarket prices conducted by A.C. Nielsen Co. for The Wall Street Journal.

The annual increase in grocery prices was nearly a third less than the inflation rate for the same period.

No kidding.

``Yet shoppers persist in believing that they are getting ripped off,'' The Wall Street Journal reported Thursday.

One reason, The Journal said, is that a proliferation of new products and sizes, double-discount coupons and store specials has confused customers about No kidding. They really haven't.

For a four-year period that ended last September, the top 100 packaged-goods categories (excluding meats, fresh vegetables and fruits) rose a mere 2 percent a year, according to a national study of supermarket prices conducted by A.C. Nielsen Co. for The Wall Street Journal.

The annual increase in grocery prices was nearly a third less than the inflation rate for the same period.

No kidding.

``Yet shoppers persist in believing that they are getting ripped off,'' The Wall Street Journal reported Thursday.

One reason, The Journal said, is that a proliferation of new products and sizes, double-discount coupons and store specials has confused customers about what's a good buy. Super sales give the impression that normal prices are high.

Also, fierce competition for shelf space has prompted some manufacturers to cut prices in exchange for display room. But the price cuts are temporary, and when they end, shoppers are soaring.

According to some studies, shoppers have become increasingly sensitive to any price rise. They're sensitive both because their wages are barely increasing and because prices on such items as apparel and televisions have dropped, making food-price increases seem worse by comparison.

Prices on some locally delivered itemshave increased. Last year milk went up 4.8 percent; eggs 18 percent. But 11 of the 100 supermarket categories studied by Nielsen had lower prices in September than four years before.

No kidding.

Prices declined for cigarettes, fruit juice, chocolate candy, peanut butter and cheddar cheese, among others. Sixty of the categories rose by less than the inflation rate.

So the next time you stroke a supermarket a check for $138.17 or some such number and food seems to be costing more, reassure yourself, ``It's all in my head.''

You'll definitely feel a whole lot better.

Just kidding.

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