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What the hell is going on with the price of milk?

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I went to the store today to buy milk and they CARDED me for it! So I went on milkbuddy.com and found the highest price in the US and claimed that it was the normal price everywhere. The big Milk business will soon have the price to $50 a gallon. Just wait till they have to change to their more expensive summer mix!
 
Funny Americans have cheaper gasoline, Europeans cheaper milk. Whole milk (3.5%) I buy is about $2 for a gallon if translated to American units. It's so cheap by now that I'm asking myself sometimes If they are making any money at all.
 
I've paid between $1.99 and $2.29 per gallon for milk for _years_. Pretty much the same price +/- 10 cents at all the local grocery stores: Walmart, Albertsons, King Soopers, Safeway.
 
The pricing on milk and many other products has little to do with costs, warehousing and/or, demand. Many stores have gone to pricing algorithms based on purchasing habits. Since people vary their shopping habits greatly on a weekly or, even daily basis, the algorithms change pricing rapidly as well.
 
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