Go to the grocery store, and you'll notice that box of cereal, pop-tarts, or that TV dinner seems a bit more expensive. Raw materials, such as flour, cooking oil and wheat, however, are down in price. So what gives? Grocery store chains are getting peeved about wholesale prices cutting into their margins, while producers such as Kellogg's and Nestle say some key commodities—such as tea and tomatoes—are still quite expensive. Analysts say some of the manufactures miscalculated the future price of food and are reluctant to pull back wholesale prices.
* Jennifer Waters of MarketWatch part of the Wall Street Journal's digital network
* Christopher Shanahan, a research analyst specializing in foods at Frost & Sullivan