Reduction in Food Prices

Food prices are dropping on key items like dairy and meat as producers pass on savings from lower gas prices to consumers.

Kraft Foods is sweet on Cadbury. Even after the British chocolate maker rejected its surprised $16 billion offer, Kraft says it’s not giving up, but that it helps to keep the takeover talks friendly. And it says Cadbury is running out of options as a standalone company. Merger talk gave the stock market a shot in the arm and the Dow Jones Industrial average climbed 56 points, the NASDAQ composite added about 19. But the big action was in the gold market. Investors worried about the dollar’s weakness so they were looking to precious metals as a safer asset. Gold surged over $1,000.00 an ounce. It’s the highest level in a year and a half. The oil market went along for the ride. Crude prices often followed the metal market when the dollar gets weak. Oil shot above $71.00 a barrel, but traders worry prices could head lower after the OPEC meeting Wednesday. The cartel will discuss production levels and how to get members to stay within their quotas. And finally, a bit of good news for grocery shoppers. Food prices are dropping on key items including dairy, meat, produce, and bread. In fact, prices have gone down seven out of the past eight months. That’s because food producers are passing on their savings from lower gas prices, and trying to beat the competition with steeper discounts. For more business headlines, just check out cbsmoneywatch.com. In New York, I’m Alexis Christoforous.