bra-11-01-16-charts-food_price

Here’s Why Groceries Are Super Cheap Right Now

Oct 26, 2016

Just a few years after a historic run-up in the price of food—grocery costs in the U.S. have been on a steady decline in the U.S. for most of this year.

There are plenty of factors contributing to that, but here’s a big one: oil. Not only is energy a big part of the cost of producing food, but oil is also a big part of the cost of producing many fertilizers. On top of that, cheap crude drives down demand for biofuels, further driving down crop prices.

It turns out years of sinking oil prices have been good for more than just road trips. Shoppers, rejoice.

For more on the energy industry, watch this Fortune video:

A version of this article appears in the November 1, 2016 issue of Fortune with the headline "The Many Effects of Oil’s Big Bust."

All products and services featured are based solely on editorial selection. FORTUNE may receive compensation for some links to products and services on this website.

Quotes delayed at least 15 minutes. Market data provided by Interactive Data. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. S&P Index data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Terms & Conditions. Powered and implemented by Interactive Data Managed Solutions