“This is barely anything to feed me for a couple of days.”
It's a thought many Americans may have had in the last year or so as they shop for groceries, and a thought one man voiced out loud during a recent video on TikTok.
The video, created by @carenstino, features a vent of frustration over the high cost of groceries. Pointing the camera to his purchases, viewers are shown he was able to purchase just eight items for $100. These included eggs, English muffins, chicken, rice, body wash, seaweed, beverages and some thank-you cards.
“This is getting out of hand,” he said in the video. “It’s to a point where people can’t live.”
Commenters also showed the frustration Americans feel right now, with one stating, “I used to make family dinner 6 years ago for $40. The same exact dinner cost $90 now.” Another complained, “My fiancé and I used to spend $75 a week like 5 years ago when we were first dating. We are at like $275 recently. We actually eat less now.”
Why food costs rose so much, so fast
Food inflation may be starting to ease, according to the White House, but easing in this case might mean stabilizing rather than coming down.
The climb started during the pandemic, with food processing facilities having to put a pause, or at the very lease slow down, on production due to lockdowns. In response, groceries began to climb in price, leading to things like the toilet paper shortage from supply-chain issues.
But the easing of restrictions didn't cause prices of grocery items come down. Supply-chain bottlenecks continued, demand reached a fever pitch at both homes and restaurants, and geopolitical issues also came into play. The war in Ukraine, poor weather, and continued lockdowns in China all affected grocery prices.
Groceries made up 8% of total consumer spending in 2021. Compare that to gasoline at 3%, and utilities at 6%, the White House stated.
In January of 2023, food prices were up 11.3% year-over-year, according to the Bureau of Labor Statistics. This was back when eggs alone caused a major issue, surging 70% in price year-over-year. However, since then the cost of food inflation has eased somewhat, with, as of this summer, food prices up 5.7% year-over-year.
This is all to say that while there are signs of improvement, with eggs, produce and other costs stabilizing or even declining, prices are still elevated from what they were pre-pandemic. This is putting an economic strain on many Americans, especially those whose salaries have not risen at the same rate as inflation.
How to stretch your cash further at the grocery store
As I'm sure you know, you can clip coupons and look for the discount deals in grocery stores' flyers. You can buy cheaper in-house brands and/or go to dollar stores.
Here are some ideas that you might not have thought of:
Team up
A great way to bring down costs is to team up with family or friends when it comes to grocery shopping. By this I mean create a list together, then buy and bulk from big-box stores, like Costco (COST) or Walmart (WMT).
Buying in bulk will in most cases bring down the per unit cost of items, but it can be more expensive to buy that item in the first place. However, if you and your brother live in the same town and both need paper towels, you can team up, make the purchase, and split it between you both.
Do this for a number of items and this alone can bring down the costs of grocery each week, saving money and preventing waste.
Grow at home
Remember during the pandemic when suddenly everyone online was a gardener? We've lost that in the last year or so, but it's time to get back to creating food at home.
Whether you live in an apartment or have a sprawling estate, it's easy to grow a lot of basics for nothing. Items such as green onions and lettuce can grow easily from scraps for example, and even vegetable scraps can be made into vegetable stock.
If you don't have the space to grow inside or in your yard, consider joining a community garden or food co-op. Not only will you then grow your own items and reduce spending, you'll also have far fresher ingredients to work with.
Buy in season, and freeze!
If you have some cash set aside during the summer, buy as much as you can of fresh vegetables and fruit, again perhaps partnering with a family member. When in season, prices come down and can help you later on when those prices surge once more in the off season.
Items like fruit and vegetables can easily be frozen and used throughout the year. Herbs can be dried and blended to create your own at-home spice rack, rather than spending money on store-bought items.
Again, this brings down your yearly spending on grocery items, and yet it also means you'll be working with fresher ingredients.
Cut out the middle man
Another top tip is cutting out grocery stores completely for fresh items. Instead, seek out local farmers and market places to purchase items directly.
While this can certainly help when it comes to fruits and vegetables, you can usually find items such as eggs, milk, cheese, and meats. Items that tend to cost more at grocery stores.
Of course you can't cut out a grocery store completely, and looking for cheap items from flyers and coupons will still help. But overall, by using these methods and doing what you can at home, with family and friends, and with local producers, Americans can certainly bring down their costs by a substantial amount.
On the date of publication, Amy Legate-Wolfe did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
