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by swagasaurus-rex 1216 days ago
These issues affect everything a grocery store sells. Crops are water dependent, food is heavy and bulky to transport, and it's all wrapped in plastic.

Previously the food industry competed on price. Supply was disrupted which any econ student would tell you increases prices. But the second order consequence was that these companies no longer competed on price, for a short time. They could justify price increases because everybody including their competitors were doing it. Since the grocery stores set the price, they determined that luxuries like 'bottled water' could go up higher since their price-sensitive customers rely more on necessities. Once supply stabilizes, these companies might start competing on price again. But in a free market, as long as their competitors keep their high margin items expensive, they can do so too.