Have any of you checked your grocery receipts and noticed food prices seem to be going up?
I have!
For the most part, I’m not seeing major increases. Well, except for meat at the supermarket I regularly shop at, which went up about 25%, and ground beef hasn’t been available for several months now. The butcher can’t explain why it’s disappeared or why prices jumped like this. I know that’s not the case everywhere, and that increase isn’t typical. What I am consistently noticing are steady smaller increases.
I talked to a couple of people who work in wholesale food sales, who both told me that prices are “jumping” at the wholesale level. I’m always interested in the behind the scenes understanding of what’s going on, so I asked each of they could explain what is causing the prices to increase.
One didn’t know (but he told me if there was something I wanted, to buy more of it than I would usually buy to offset the ongoing price increases), but the other told me that shipping costs are dramatically rising, that costs have shipping containers have gone from less than $3000 for a load to several times that. Those shipping costs have to be passed on to the consumer, which means…higher food costs.
And that’s not affecting just food. A few weeks ago at the housewares store I spoke to the owner while I was checking out. Literally as I was at the checkout, they increased the price of my item by five shekels. When I asked why, they told me their shipping costs are rising and they are raising the prices on every item by five shekels.
Then a week later I went into one of my favorite nurseries, and noticed that plants that were 25 shekels the week before were now 37, and that every single plant had increased in cost. This time the owner was busy and I didn’t ask him why everything had gone up so much.
I found it interesting. But while the food wholesalers were very clear about their concern, increases take time to trickle down to the retail market, and maybe it’s not yet so noticeable that prices are moving up?
And this was also interesting – the US has announced that it will be increasing food stamp benefits by 25% on October 1. To me it seems that those making the decisions expect retail prices to rise and are preparing the recipients accordingly.
What does that mean practically? One super helpful strategy for keeping a food budget in check is buying the sales. If you have a freezer, you might want to buy some extra chicken or meat at today’s prices, which may be tomorrow’s sale prices. You might want to buy a bit more of the foods that you already eat, particularly those that are non-perishables. If the prices go up more, you’ll save money; if prices don’t move up any further (let’s hope!), you’ll still be eating the same groceries you would have eaten anyway!
I’m curious about if you’re seeing anything like this where you live. My impression is that prices are rising faster in other parts of the world than Israel. Have you noticed food increases, and if so, what kind of increases?
Avivah
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