Did you feel last year's 3.85% inflation rate? Not me. I felt something worse than that. Last January my budget sheet showed I spent $300 a month in groceries. At 3.85%, that would make this year's monthly grocery bill $311.55 but it isn't. It's closer to $400.
So it may be the government's inflation index, but it's not mine. And probably not yours either. The Bureau of Labor Statistics consider the regular price in the index, but many people don't shop that way. We use coupons, hunt for sales, stock up on specials, and browse resale shops and Craig's List.
Example: I keep a supply of Coca Cola in the house -- 1/2 liter 6-packs. For years I stocked up on sale, and there was always a sale somewhere. I rarely bought the product for more than $2.50 a pack. Early last year my limit had to increase to $3.00, then later in the year I couldn't find Coke 6-packs on sale anywhere. Saturday I got some at Kroger's for $4.25, and that was a deal.
The same thing is happening with dishwasher detergent, cheese, orange juice, eggs, and some of the frozen meals I keep on hand for when I'm too tired to cook.
My biggest concern is that even if we experience deflation this year, is there motivation for food and household goods companies to lower their prices? I don't have to buy a new couch but I do have to eat. Moreover, I'm worried that some of my favorite foods will disappear -- the ones that cost more, but are made with real ingredients and no chemicals.
Subscribe to:
Post Comments (Atom)
Posts
2 comments:
You should remember the year of the sugar shortages. That is when we saw EVERYTHING take a massive price increase - chocolate bars went from 10 cents to a dollar - baked goods increased, anything and everything that contained sugar in any form.
Sugar dropped--chocolate bars are still $1
I remember when prices rose in the 70s, is that when you're talking about? Meat, coffee, it all went up, and that was the beginning of an industrialized food system for America.
Post a Comment