Tuesday, April 27, 2010

Inflation Hits The Supermarket

One report cites these statistics:
Food prices jumped by 2.4 percent in March, the most since January 1984. Vegetable prices soared by more than 49 percent, the most in 15 years. A cold snap wiped out much of Florida's tomato and other vegetable crops at the beginning of this year.
On top of that, gasoline prices rose 2.1 percent - the fifth rise in six months. gasoline is over $3.00 in many places already.

And yet this story is so ridiculous because it concludes that excluding food and energy there's no inflation! Don't they understand that food and energy are the most important commodities to include!

Of course there is inflation.

Have you taken a look at what your dollars buy at the grocery store lately? You are getting a whole lot less for the same amount of money that you would usually spend on a shopping trip. A whole chicken can be as much a $14! You pay well over $14 for a 20 pack of Scott Toilet paper or 10 pack of paper towels, and over $3.00 for a loaf of bread, and a dollar a piece for navel oranges.
It's getting ridiculous!
I spend anywhere between $150 and $200 a week for groceries now for 3 adults, where I used to spend $125 for a family of 5!

We don't shop at the expensive food stores and I always buy sale items. My son told me that for his weekly shopping trip he spent $45 for the following items: a chicken, vegetables, a bag of potatoes, a bottle of juice and a quart of milk.

Yeah - there is inflation all right.
Just look at the packaging.
You are getting less product for the same amount of money.

I'd be interested to know what you are seeing in the supermarket.
Do YOU think there is inflation?


Anonymous said...

Pass cap and trade(tax) and that $3/gallon gas will be $5 to $6/gallon then we'll really see inflation not just in the supermarket but everywhere.

800 billion for tarp where are the jobs????

Frazikat said...

What I have noticed is that graham crackers are now much much smaller than they were a year ago. The boxes are narrower, too. Subtle, but if you eat them all of the time (like me) you definitely notice the change in size. Some brands of toilet paper are also cut narrower compared to a year ago. Since that's one item I stock up on, I was able to compare the change in size. I even emailed one particular maker of toilet paper, and they would not even reply. Smaller sizes, larger prices. Yes, there IS inflation!

Eric Holcombe said...

TN is a relatively low cost-of-living state, so sometimes our prices can be somewhat lower here, even for national chains. However, I have noticed a lot of the packaging you described for some time: 50 lb dog food now 37.5lbs, 5lb sugar now 4lb, ice cream 1/2 gal. now 1.5-1.75 quarts - all at the "old" prices plus the fake 4% inflation. So the real inflation is about 30% when you first make the jump.

Our gov't has been spouting those low inflation numbers a long time ignoring housing, food and energy. If your cash investments aren't making 15% returns, you aren't breaking even. On the other hand, if you own those commodities the gov't ignores in their inflation calculations...

Anonymous said...

Single income homeschooling family of six here...we are drowning.

All of our children have celiac disease, so our diet is more expensive. I'm keeping things as plain and from-scratch as possible, of course, but still spending 50-100% more for most items than I spent at this time last year.

Several years ago, it all cost $1.50. A loaf of good bread, a gallon of milk, a gallon of gas, a box of cereal, a bag of apples, a bag of potatoes, a jar of peanut butter, a pound of meat...all $1.50 each.

Last year these items were all $2-$2.50 each.

Now these items are $3.50-$4 each.

Amy R