When energy costs (gasoline at $4.50/gallon and diesel over $6/gallon) rise significantly, consumers face budget constraints that may lead them to reduce discretionary spending on other goods, such as beef, even during peak seasons like grilling season.
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Price Of Beef Coming Down?Added:
We talked about this Wednesday on the radio, Tony, that the price of beef in the grocery store is really high. And when you're looking at $6 a pound for hamburger, when you're looking at consumers needing to buy gasoline as you know, $4.50 a gallon, price of diesel is over $6 a gallon, somewhere you have to start to decide where you're going to spend that money. I could see eventually, even though it is grilling season coming up, I could see consumers backing off on that. We see some reduction in some of these outside expenses.
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