Going to the grocery store doesn’t get cheaper at all.
Rising food costs have helped boost Inflation was higher again last monthalthough decreased in gas price. The food index alone has increased by 11.4% in the past year, according to the latest figures Consumer price index – marked the biggest jump in 12 months since May 1979.
The Home Food Index, a measure of price change at grocery stores, rose 13.5% – also its highest level in 43 years.
With prices soaring, consumers are cutting back, according to Mark Hamrick, senior economic analyst at Bankrate.com. However, “food, on a fundamental level, is not discretionary,” he said. “That’s the challenging side of the situation we’re in.”
Prices of staples like eggs, milk, cereals, bread and butter recorded some of the biggest gains, further straining household budgets.
Inflation has also caused many food and beverage companies, including Coca-Cola and PepsiCoarrive price increase on beverages and packaged goods. Some are also making their packages smaller – also known as “deflation“- or swap out the less expensive components, a tactic now known as ‘hyperinflation’.
“Grocery product manufacturers know that while most shoppers will immediately notice a price increase, they are less likely to experience a drop in volume,” said Edgar Dworsky, founder of Consumer World. net product or switch to cheaper raw materials. is tracking down the size of popular products, such as Charmin, Quaker Instant Oatmeal, and Honey Oatmeal Bundle.
The Federal Reserve took drastic steps to fight inflation increasesand a survey released earlier this week The New York Fed shows that consumers are less afraid of higher prices – although they still expect an inflation rate of 5.7% a year from now.
“Consumers are prepared for high prices to continue for the foreseeable future, but there is also a tendency for people to think things can return to normal,” Hamrick said.
In the meantime, “it is prudent that individuals continue to be cautious with their household budgets,” he added.
So, savings experts share their top tips for spending less on groceries as food inflation shows no signs of slowing down any time soon.
“It’s belt-tightening time and it’s been a while,” Hamrick said.
- Look closely at sales. Generic brand can be 10% to 30% cheaper compared to their “premium” counterparts and is fine, but not always. Big-name brands may be offering larger-than-usual discounts right now to maintain loyalty, so it’s important to keep an eye on price swings.
- Plan your meals. When you plan your meals in advance, you’re more likely to buy what you need, says Lisa Thompson, a savings expert at Coupons.com. If planning isn’t your thing, at least go shopping with a rough idea of what you’ll be cooking for the next week to help stay on track and avoid impulsive shopping, she adds.
- Buy with big quality. When it comes to the rest of the items on your list, you can save even more by buying in bulk. Join a wholesale club like Costco, Sam’s Club or BJ’s and you’ll usually get the best price per unit of spices and perishables.
- Use a cashback app. Ibotta and Checkout 51 are two of the most popular apps for earning in-store cashback, according to Julie Ramhold, a consumer analyst at DealNews.com. The average Ibotta user earns between $10 and $20 a month, but more active users can earn as much as $100 to $300 a montha spokesman told CNBC.
- Pay with the correct card. While a generic cashback card such as Citi Double Cash Card can earn you 2%, there are grocery reward card that can earn you up to 6% cashback at supermarkets nationwide such as Blue Cash Priority Card from American Express. By CNBC Option only one full best card for grocery shopping along with APR and annual fee.