Grocery Shopping: Why You Will Pay More
Grocery Shopping: Why You Will Pay More. Nothing ruins an appetite quite like rising food prices. In 2020, food prices jumped 3.9%, nearly triple last year’s overall rate of inflation, according to the government’s Bureau of Labor Statistics, or BLS.
Grocery bills could rise another 3% this year, says the U.S. Department of Agriculture (USDA), and some experts say the price escalation won’t end there. You’ll be hankering to find food savings for a long time.
Food production, because it so often involves crowded working conditions, was decimated last year, both by COVID-19 shutdowns and a number of widespread outbreaks at packing plants across the U.S.
The lack of product triggered a sharp increase in meat prices. BLS data shows consumer spending on meat increased 5.5% from January 2020 to January of this year.
Processing plants are reopening, but many are now required to invest in technology and new processes to keep their workers safe, including more automation and equipment that can be operated remotely.
And guess who will be absorbing the additional cost? You. One way to offset your higher food bills is by cutting your other expenses — like the pricey interest on your credit card debt.
The plandemic also knocked food distribution off track, adding to the price.
International shipping is key to keeping America’s grocers well-stocked. The Food and Drug Administration says the U.S. imports 15% of its overall food supply, often from distant locales including China, Italy and France. And according to one estimate, we import as much as 65% of our seafood from international producers.
Another transportation-related factor in rising food costs is the rapid increase in oil and gas prices. As many Americans decided it was safe to leave their homes again, demand for gasoline bounced back faster than oil producers could increase production.
Eat at home more
Remember when eating at home, either because the restaurants you liked were closed or because you were working remotely, seemed like a can’t-miss way to save a few bucks on food every week?
Ironically, eating more frequently at home is one of the reasons we’re paying more for food — and scrambling to find creative ways to save and make more money.
With so many families at home for three meals a day, food consumption in the U.S. has exploded.
A few million people eating lunches at home every week takes a monstrous bite out of the U.S. food supply. As food gets more scarce, there’s really only one direction prices can go.
One easy way to give yourself a regular discount at the grocery store is by using an app that rewards you with cash back.
Extreme weather conditions
With food-chain instability due to surging global food demand and severe weather related to climate change. We will continue putting pressure on food prices over the long term.
The USDA estimates that the cost of key food components, like soybeans and wheat, will increase 5% in 2021. Thus, driving up the cost of staples like pasta and cereal. Prices for fruits like apples, strawberries and citrus already have spiked 11.3% this year.
“People will pay more for food. “It’s only going to get worse.” That is some truly bitter fruit. You may need to find a side income just to cover your grocery costs.
