High grocery prices here to stay
Get used to high food prices because they aren't likely to drop soon and may rise even more, says a story in yesterday's Daily News.
"That's because retail prices for cereal, eggs, cheese, and meat generally lag by several months or longer the world prices for wheat, corn and soybeans - the raw ingredients of so much of our food," the story says. "Some food items may come down modestly as commodities prices cool; others might not budge a cent and some may actually increase."
Food prices have jumped 6 percent this year, well ahead of the normal inflation rate of about 2 percent. Increasing demand and disastrous weather have increased the price of flour, rice and other staples, the story says.
Food prices have fallen slower than gas prices because prices for food commodities are "well above historical levels," and because there is actually only a small amount of corn, wheat and grains in our food, giving manufacturers less pricing power.
That last reason doesn't make a lot of sense to me. If a box of corn flakes only has a little but of corn in it, why would the price rise so much in the first place?
If you haven't already, check out My Nitty Gritty Grocery List. I updated it recently with the best prices for 35 staple items. Print it out, stash it in your wallet, and refer to it to see what is a "good" price when you are grocery shopping.
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About The Bargain Hunter
Daily News staff writer Julia Scott loves to find bargains on everything from groceries to Gucci. Her tips will help keep your hard earned cash where it belongs - in your pocket.
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Didn't one of your colleagues at the Dail News/LANG ask you about this subject recently?
I'm assuming from the AP byline that writer is not from the Daily News/LANG or Media News Group.
Did the writer ever do a local story about lower food prices. I haven't seen it, but I don't pick-up the Daily News everyday anymore, just certain days, such as Bargain Hunter section day...lol.
Anyway, to the writer's point, I'm not seeing reductions in my market basket, if anything, I see price increases and reductions in package sizes.
I still believe that more price increases are on the way as the big boy chain staores have been pushing the increases back to their vendors, and their suppliers are facing resistance when attempting to push through what are now considered very large (on a percentage basis) price increases.
My assumption is that the vendors have now re-calculated what the marketplace will take and instead of a 10 percent price increase (which may justified), they may only pass through 5 percent now, and come back several months later to push through the additional increase.
As much as some people/pundits gang up on Wal-Mart, maybe it's they and Costco who are helping the consumer by pushing back the price increases from their vendors? Costco clearly states this in their most recent quarterly results.
Other than seasonal specials on fruit and produce, prices are up, up and away!
As Irwin would say, you're killlling me Larrry!
SO_CAL_RETAIL_SLUT
I am outraged how prices from Target and Costco have raised significantly! I bought a 12 pack Scott extra soft toilet paper at target last week for $8.99. Yesterday the price has gone up to $9.24(not sure but its around that price). It used to be $7.99 beginning of this year. So imagine how the prices have increased. I always have a coupon for this but I cringe every time I see the price. Costco has raised the frozen sea scallops I buy. It used to be around $10. And now its $19.99!! I am now not able to enjoy scallops. :( I survive by continuously looking for sales. I love Trade Joe's too! Nothing can beat 19 cents bananas!