Ways Americans Can Lessen the Pain of Inflation While Shopping for Groceries
The Issue at Hand
As food prices increase, U.S. shoppers are feeling the pinch in their wallets at the register. In September 2022, consumer prices rose by 8.2% compared to 2021 levels, according to the U.S. Bureau of Labor Statistics data. In analyzing the data, food, shelter, and medical care contributed to the overall surge. As weekly grocery bills increase for families, the wages of most U.S. citizens are not rising at rates that can keep up with the robust consumer prices.
What is Inflation?
Inflation is defined as a general increase in prices and fall in the purchasing value of money. As it continues to rise, American consumers will experience the impact, as their hard-earned dollar will not go as far as it used to in years past.
For example, CNET explains a movie ticket cost $3.55 in 1985, however, today’s price is $13. Furthermore, the usual “acceptable” inflation rate approximates 2% each year so the 8.2% September Consumer Price Index (CPI) report was viewed as high even though it declined slightly from the 12 month change of 8.3% in August.
How Can Consumers Combat Rising Prices?
As a result of rising prices, many concerned consumers are buying less. According to CNBC, Americans have been saving money and exploring creative ways to stretch their dollars. Such ways range from cutting back on monthly subscription services (such as streaming) to getting a haircut every eight weeks instead of four. Morning Consult mentions ways consumers can cut back on grocery spending, including:
- Compare prices across grocery stores: It may not always be convenient to walk or drive to a few local stores to comparison shop, but the payoff is worth it in the long-run. Running into a few stores to take inventory of their goods and pricing patterns makes one a more educated consumer. Recently, we found that a weekly special on ground beef at Whole Foods Market resulted in a $3.99 per pound savings compared to other local neighborhood stores.
- Buy generic: Although the packaging may lack appeal, generic food is often cheaper and just as delicious as branded options. Whether one opts for Fairway Market pancake mix or Stop & Shop jelly, your taste buds will be pleased as well as your pocketbook.
- Clip coupons: The practice of clipping coupons may sound antiquated to our generation. Some can visualize their grandmother or neighbor taking their scissors to the weekend coupon insert pages at the kitchen table on Sunday mornings. The result would be piles of coupons in neat stacks sorted by grocery store aisle. Today, many grocery stores offer online coupons and discounts, lessening the burden for money-saving customers. Consumers can clip digital coupons via grocery store apps from their mobile devices which eliminates paper and increases convenience.
- Eat less meat: Forgo the $13.99 package of bacon! Meat is now a treat for many Americans. Due to high prices of meat, many families have opted for vegetarian nights a few times each week. Making pizza with meatless toppings, bean only chili, or lentil soups and stews can have a positive impact on your family’s budget and health.
- Use a grocery list: We have all asked our parents or guardians for the appealing, yet expensive, snacks near the cash register. The fancy European chocolate bars or exotic cookies look attractive but are not needed. Moreover, shopping with a grocery list creates a necessary discipline that all should embrace. Before your grocery store trip take a few minutes to write down the items you really need in your home. When you arrive at the supermarket stick to your list and do not make any impulse purchases.
- Create a meal plan: Once a week plan meals for the upcoming 7 days and prepare accordingly. Meal planning is not only a healthier option for your family, but also a cost effective one. By having an idea of what your family will eat for dinner each evening, you will eliminate the last minute urge to order or dine outside the home, which can be pricey. Some people even make meals on the weekends and freeze them for future use (meatballs and sauce, lasagna, or chicken stew, for example).
- Purchase staples, including non-perishables, in bulk: Wholesale or warehouse stores such as Costco, BJ’s, and Sam’s Club, offer discounts on bulk purchases. Household staples such as canned tomatoes, spices, beans, rice, and pasta can be purchased cheaply in larger quantities. Many times, these food items with long shelf lives can be stored for several months before expiration.
Result
Although food prices for the remainder of the year may face elevated levels, consumers have many options to cut back on grocery spending while still feeding their families.
Sources:
BLS
https://www.bls.gov/news.release/pdf/cpi.pdf
Morning Consult
https://morningconsult.com/2022/10/17/grocery-inflation-continues-consumers-buy-less/
CNBC
CNET
