Margins at the company, get pinched when gasoline prices rise. As a result, margins for the current firstquarter likely will be below normal, Safeway chief executive Steve Burd said.
Safeway and other supermarket chains sell fuel for cars at some of their stores.
On the other hand, rising costs for key food items ranging from coffee to beef should boost results at supermarkets that can pass on those costs to shoppers.
The question is how high prices can go before shoppers -who are still grappling with high unemployment and the threat of a further spike in gasoline prices due to unrest in the Middle East -pull back.
"We're starting to see the benefits of moderate inflation" said Burd, who added that inflation has been up less than 1 per cent so far this quarter For the latest updates PRESS CTR + D or visit Stock Market news Today
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