About two months ago MP Dunleavy wrote about her rising concern with inflation. She noticed that her spending from a year ago has gone up dramatically. She spent $400 last year on groceries, this year it was $587. She spent $140 on miscellaneous items last year and $346 this year. She blames inflation. Was her overspending really to do inflation or just overspending?
A recent article on MSN suggests that higher inflation is around the corner. Because of the debt the US is in, and the fact we’re printing more money, it’s easy to assume that inflation will occur. Also the Federal Reserve Bank is keeping interest rates low to promote borrowing, thus further nudging us towards inflation. And oil prices which precipitiously dopped fall is creeping back up.
So have you noticed inflation? I’ve noticed it in grocery prices. The staples I always buy when they are “rock” bottom don’t seem to be appearing. I traditionally pay $2 for a 12 pack of Coke, now the base price is $2.50. I typically pay $1.69/lb chicken breast, cheapest I’ve seen this year is $1.99/lb. Traditionally I pay 25 cents/roll of toilet paper, it’s averaging even with coupons 50 cents/roll. The deals I’ve come to rely on every 12 weeks haven’t been cycling as regularly. Also the cartons of orange juice/ice cream/cereal, though it’s same price, they’ve SHRUNK!
But my spending hasn’t risen like MP Dunleavy’s. Rather I’ve curbed buying to keep my budget intact. But I can definitely concur that it’s harder to get deals and stick within a budget. Inflation has been creeping up.
Have you noticed a rise in prices?
9 responses so far ↓
1 Meg from FruWiki // Jul 11, 2009 at 1:53 pm
In her case? Who knows! There have been increases in some areas but also price cuts in others. And in any case, I wouldn’t blame inflation just in general unless I knew that I was buying the same stuff in the same quantity, or at least compared specific prices. Otherwise, it might just be lifestyle inflation — or even just a few extra costs that I didn’t have the year before.
But, yes, there has been a noticeable increase in the price of food — even, and perhaps especially, basic items like flour. I can’t believe how much we spend on food even when we really try to eat cheaply. I can only imagine what it must be like for those living paycheck to paycheck and trying their best to eat healthy.
Goodness knows, wages aren’t keeping up.
2 FB @ FabulouslyBroke.com // Jul 11, 2009 at 5:09 pm
MP Dunleavy always slightly annoys me with her logic and her spending.
I’ve noticed prices jacked up in Canada too.. due to lack of sales and demand from the U.S. AND Canadians who are cutting back to save a buck.
3 fengshui // Jul 12, 2009 at 10:20 pm
She only spent $400 on groceries for the entire year?!?! Did I misread something?
4 fengshui // Jul 12, 2009 at 10:25 pm
Its hard to say, I honestly don’t pay enough attention. I do notice it on things that I don’t buy very often, like a magazine or something. I bought an Elle magazine tonght and it was $3.99. I don’t ever remember magazines being $4 and $5…. And a 12 pack of diet coke is usually $4 around here, unless I can find them on sale for 4 for $12. But, we also spend more on groceries because we buy from a farmer who is organic/ free range. Our beef doesn’t have sodium nitrate/ nitrite in it, or hormones, etc. It is a little bit more, but worth it, to us.
5 LAL // Jul 13, 2009 at 7:21 am
She spent $400/month on groceries last year and $567/month this year.
I think the inflation is hitting more, or to me it’s slightly more noticeable.
6 fengshui // Jul 14, 2009 at 10:59 pm
ok, per month. Makes sense. $567 seems a bit much for groceries….. but it really does depend upon where you live. I know that there are some people on WIR that say that they can feed a family of 4 on $30 a week, and I just don’t believe that. But then again, I refuse to eat chicken salad sandwiches on white bread for lunch and dinner 3 days in a row…..
7 LAL // Jul 15, 2009 at 9:01 am
Fengshui, often times $30/week is because they heavily coupon shop. And they eat a lot of processed foods which many people who don’t coupon shop refuse to touch. I include myself there.
Also they never buy anything organic. That never has coupons really. And fresh fruits and veggies are rare.
8 Penny in Australia // Jul 22, 2009 at 6:13 am
$2 for a 12 pack of Coke? My goodness! What size are the Cokes? 375ml cans? That’s incredible – 16c each. Here I used to find them for 50c (= $US0.60) each, but not for at least a year or two, price is usually up around 60c per can (or $13 – 14 per 24 can pack). And my rule is 50c for toilet paper. Only time I’ve been able to beat that was when I bought a big pack of 72 rolls at a time for a per roll cost of about 40c.
9 LAL // Jul 23, 2009 at 10:13 pm
Normal size cans 375 ml. Penny Coke is an american staple.
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