(WXYZ) — From the gas pump to the grocery store, prices are expected to start dropping, but the question is: How soon?
Arielle Jenkins, a business owner, told 7 Action News a recent grocery store bill of more than $130 is actually lower than normal. But she hopes it will fall more as a result of falling fuel prices.
“I’m looking forward to some better deals,” Jenkins said.
Another driver, Renee Gucciardo, said, “People are having a hard time feeding their families, getting where they need to be.”
She is expecting later this year to see a reduction in the rate of inflation. Experts are also weighing in on the economic impact of a cheaper price for a barrel of oil.
“We’re driven by oil — no pun intended.” Oakland University professor Michael Greiner said.
Greiner says milk is one of many grocery purchases that should become more affordable, but how soon is unknown.
Many agricultural products and daily items being shipped are priced based on the cost of petroleum-based materials like plastic.
“A lot of plastics are made of oil. Agriculture and everything is impacted by price of oil,” Greiner said.
At roughly $100 per barrel, many are hoping to get more of a break sooner than later, but experts agree turning around prices won’t happen at the same rate they went up.
“In Capitalism, people are quick to raise prices ... much harder to bring down prices,” Greiner said.
He says don’t forget gas stations are also in competition with one another, and prices they charge are impacted by cost of oil fluctuating daily.
