PLEASANTON (CBS/AP) – Safeway Inc. said its profit slipped 6 percent its fourth quarter as a result of higher commodity costs.

Grocers have face rising costs for products because of rising prices for ingredients and fuel, while at the same time dealing with cost-conscious shoppers.

The Pleasanton-based company said it earned $215.6 million, or 67 cents per share, in the last three months of 2011. That compares with net income of $229.6 million, or 62 cents per share, in the same period last year.

The higher per share results in the latest quarter were the result of a stock buybacks that reduced the number of outstanding shares.

Analysts on average expected a profit of 64 cents per share, according to FactSet. Shares of Safeway rose 18 cents to $22.85 in premarket trading.

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