A chocolate bar in 2008 set you back about 90 cents.

For those of us who can remember when 100 Grand Bars cost 50 cents, the 2008 price probably seems steep (especially when you realize that candy bar sizes have been simultaneously shrinking). But considering the rapid price hikes in recent years, it's actually a steal.

According to an annual survey of candy prices conducted by the American Sugar Alliance (ASA), candy bar prices shot up to 99 cents last year and are peaking today at $1.09.

Why? Some manufacturers might point to ingredient prices. After all, farmers are often food companies' scapegoat when the cost of farm goods goes up. That doesn't explain this phenomenon though.

True, sugar prices rebounded this past year and were higher than normal, but the price of other sugar-intensive products actually held steady or, in some cases, declined slightly from 2009 to 2010. The prices of cake mix, frosting, Jello, and ice cream were all down, yet the price of candy was up sharply.

The explanation can be found in a March New York Times article.

"The recession seems to have a sweet tooth," the newspaper reported. "As unemployment has risen and 401(k)'s have shrunk, Americans, particularly adults, have been consuming growing volumes of candy...say candy makers, store owners and industry experts."

And this rush to the candy store has produced windfall profits for confectioners.

"Many big candy makers are reporting rising sales and surprising profits even as manufacturers of other products are struggling to stay afloat," noted the Times article.

If their profits are up, it seems strange that large candy companies are lobbying Congress to weaken the farm safety net in hopes of sending sugar prices lower and corporate profits soaring. But that's exactly what is going on.

The ASA cautions against believing food manufacturer claims that rock-bottom-priced sugar would mean lower grocery bills for shoppers.

There's only two-cents worth of sugar in that $1.09 candy bar, which means sugar accounts for less than 2 percent of the product price.

"If we gave candy makers sugar for free and they decided to break tradition by passing every penny of savings along to shoppers instead of improving their own profits, that $1.09 candy bar would still cost $1.07 or more," said Pete Dufresne, a sugarcane farmer from Paulina, Louisiana. "That's hardly an economic stimulator."

As for the argument that sugar is too expensive, Dufresne simply pointed out, "Sugar remains so inexpensive that you can literally walk into any restaurant in the country and use as many sugar packets as you want for free."

Candy Prices Rose Even Though Other Sugar-Containing Product Prices Fell

Source: Safeway Store, Arlington, VA, June 2010
1 Assumes 2009-average wholesale refined sugar price of 38 cents per pound. Sugar content computed from nutrition label.