Inflation Seen as Mixed Bag

With food-cost inflation on the rise a trend that is expected to continue in 2011 food retailers are beginning to get a sense of whether or not customers will accept higher shelf prices. The retailers that are in the best position are the ones that have established what I would call value credentials during the downturn and early part of the recovery, said Chuck Cerankosky, an analyst with Northcoast

With food-cost inflation on the rise — a trend that is expected to continue in 2011 — food retailers are beginning to get a sense of whether or not customers will accept higher shelf prices.

“The retailers that are in the best position are the ones that have established what I would call ‘value credentials’ during the downturn and early part of the recovery,” said Chuck Cerankosky, an analyst with Northcoast Research, Cleveland. “Customers already trust those chains' pricing, and may

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