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Food prices rose by 5.8 per cent in September, prompting the federal government to ask Canada鈥檚 five largest grocery chains to provide a plan for how they will stabilize prices, with staple products a likely focus. 鈥淗igh transportation costs, inventory issues and other pressures driving up costs are subsiding,鈥� says Professor Saibal Ray, who specializes in Operations Management. Ray, commenting to Financial Post and Toronto Star, suspects the grocers鈥� promises to Ottawa will involve price cuts. 鈥淭he price reduction or stabilization will be in staples, and grocers could try to compensate for slimmer margins in staple products by expanding their margins in luxury goods.鈥� But the true test will come in the next round of quarterly earnings. 鈥淚f the margins remain the same,鈥� Ray asks, 鈥渢hen what are they doing?鈥�