A post on the Consumer Reports Money & Shopping Blog focuses on the fact that after the economic slowdown, while commodities costs sunk, prices at the supermarket and the pump did not drop as quickly, and prices of some goods actually kept rising.
According to different experts, there are at least four arguments companies use to justify their reluctance to drop prices:
Fear of a price war. Rather than production costs, prices are dictated by what the competition charges. Price wars ensue when competitors lower their prices. And the fear of tumbling profits because a price war makes stores keep their prices unchanged.
Manufacturers do not want to disappoint you. Since manufacturers think the bonanza will not last, it does not make sense to drop prices now and risk creating tension with the customers down the road, when prices will be hiked again.
You would not appreciate it. While people feel great pain from price increases, they tend to be less appreciative of price decreases. If companies are not sure that the decreases are going to last, it does not make sense for them to drop prices.
It is your turn to help. Companies not always burden the consumers with their extra costs. Keeping prices high is a way to recoup lost profits for companies whose price hikes were not enough to fully cover their own costs.
After reading these explanations, is there reason to shout conspiracy?