With the holidays firmly behind us and many Americans closely watching their budgets ahead of the warmer months, most of us are looking for deals and cost-cutting options anywhere we can find them.
That's especially since many things are pricier than they were even just one month ago.
The most recent Consumer Price Index, reported late in February, offered consumers a look into how much their average cost of goods has gone up. Prices rose 3.1% overall on a 12-month basis, above the 2.9% most analysts were expecting.
Here's how several key consumer goods and services changed compared with the month prior:
- Food: up 0.4%
- Energy: up 0.5%
- New cars: stable at 0%
- Used vehicles: down 3.4%
- Apparel: down 0.7%
- Shelter: up 0.6%
- Transportation: up 1%
- Medical care services: up 0.7%
Food at home was up 0.4% while food away from home, which includes everything from fine-dining restaurants to fast food to take out, was up 0.5%.
"The index for other food at home rose 2.6% over the 12 months ending in January," the CPI reports, adding, "The index for food away from home rose 5.1% over the last year."
A lot of our food costs can be chalked up to inflation, but there's more going on behind the scenes than the average customer might be aware of. Factors like droughts, high production and labor costs, worker shortages, and unforeseen natural disasters also contribute to the price hikes.
Here are some of the foods that have gone up the most from January 2023 to January 2024:
- Fresh fruit: up 1.4%
- Poultry: up 1.7%
- Fats and oils: up 1.9%
- Sugar and sweets: up 4.4%
- Beef and veal: up 7.7%
- Processed fruits and veggies: up 2.5%
- Cereals and bakery goods: up 1.5%
- Nonalcoholic drinks: up 3.4%
Some customers have gotten creative with cost cuts, opting for generic and local or nonorganic foods, planning and preparing meals ahead of time, clearing out the pantry before visiting the grocery store again, avoiding meat, and going out of their way to visit cheaper stores.
Walmart makes an inflation-friendly move
Lucky for savvy shoppers, Walmart (WMT) is the leading grocer in the U.S., and since the chain has locations within 10 miles of 90% of the population, keeping a close eye on the food budget comes a little easier at the superstore.
Walmart said on its Q4-earnings call that it was making efforts to bring down the cost of some of the food items that rose the most in the past year, especially with respect to meat and eggs.
"In food, prices are lower than a year ago, in places like eggs, apples, and deli snacks, but higher in other places, like asparagus and blackberries," Chief Executive Doug McMillon said of the store's cost-cutting efforts.
"Dry grocery and consumables categories, like paper goods and cleaning supplies, are up mid-single digits versus last year and high teens versus two years ago. Private-brand penetration is up in many of the countries where we operate, including the United States.”
And in early March, Walmart said it would once again make an effort to help customers save money by making its popular Easter meal offerings more affordable.
Walmart "is once again removing inflation on a Walmart-curated Easter meal, available to purchase at a price even lower than last year, so customers can celebrate their Easter traditions while staying on budget this year," the Bentonville, Ark., chain said in a statement.
“Customers will be delighted to discover that the meal features all the Easter mainstays, from ham and sweet potatoes to all the ingredients for deviled eggs, to apple pie and more. Best of all, the meal can serve up to 10 people and is available for an average price of less than $8 per person.”
Currently, a 12-pack of Great Value large white eggs at a southern Florida Walmart location costs just $2.64. Its promotional Easter offering, which also includes nonedibles like Easter baskets and basket stuffers for under $20, runs through March 31.
