Frugal Village Forums banner
1 - 20 of 36 Posts

·
Registered
Joined
·
1,946 Posts
Discussion Starter · #1 ·
Again know I am preaching to some of the choir here, but for those who watch the market, commodities, bonds, oil prices and stock up accordingly you will be fine.

Here are some signs that you need to keep on keeping on. Stock what you eat, eat what you store, rotate and stock your pantries. For those who buy prepared food you will see an increase, if not now when. The companies are and have taken the hit in the price increases. You are the ones that might not see too much of an increase until the new skus or prices come in and companies can reduce packaging , amounts per package etc. to keep things ok for a little while. Which is great for you so stock up and coupon when you can.

But for those who buy raw goods to prepare and cook from scratch use your buying power now , shop loss leaders, in season, coupon ,bulk buy and cook from scratch. You will see the biggest increase as you are buying raw product, but since you are willing to do the work of the bulk buying and cooking you will have the biggest savings and possibilities to stock your pantry.

Do what is best for you and your family accordingly just thought I would throw out there for thoughts, suggestions etc.


Wholesale prices up 1.6 pct. on steep rise in food - Yahoo! Finance



Wholesale prices up 1.6 pct. on steep rise in food

In this March 1, 2011 photo, a customer looks at fresh vegetables at a Kroger Co. supermarket in Cincinnati. Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. (AP Photo/Al Behrman)
On Wednesday March 16, 2011, 8:57 am EDT

WASHINGTON (AP) -- Wholesale prices jumped last month by the most in nearly two years due to higher energy costs and the steepest rise in food prices in 36 years. Excluding those volatile categories, inflation was tame.

The Labor Department said Wednesday that the Producer Price Index rose a seasonally adjusted 1.6 percent in February -- double the 0.8 percent rise in the previous month. Outside of food and energy costs, the core index ticked up 0.2 percent, less than January's 0.5 percent rise.

Food prices soared 3.9 percent last month, the biggest gain since November 1974. Most of that increase was due to a sharp rise in vegetable costs, which increased nearly 50 percent. That was the most in almost a year. Meat and dairy products also rose.

Energy prices rose 3.3 percent last month, led by a 3.7 percent increase in gasoline costs.

Separately, the Commerce Department said home construction plunged to a seasonally adjusted 479,000 homes last month, down 22.5 percent from the previous month. It was lowest level since April 2009, and the second-lowest on records dating back more than a half-century.

The building pace is far below the 1.2 million units a year that economists consider healthy.

There was little sign of inflationary pressures outside of food and energy. Core prices have increased 1.8 percent in the past 12 months.

Still consumers are paying more for the basic necessities.

Gas prices spiked in February and are even higher now. The national average price was $3.56 a gallon Tuesday, up 43 cents, or 13.7 percent, from a month earlier, according to the AAA's Daily Fuel Gauge. Rising demand for oil in fast-growing emerging economies such as China and India has pushed up prices in recent months. Turmoil in Libya, Egypt and other Middle Eastern countries has also sent prices higher.

But economists expect the earthquake in Japan to lower oil prices for the next month or two, which should temper increases in wholesale prices in coming months. Japan is a big oil consumer, and its economy will suffer in the aftermath of the quake. But as the country begins to rebuild later this year, the cost of oil and other raw materials, such as steel and cement, could rise.

Oil prices fell sharply Tuesday as fears about Japan's nuclear crisis intensified. Oil dropped $4.01, or 4 percent, to settle at $97.18 per barrel on the New York Mercantile Exchange.

Food costs, meanwhile, are rising. Bad weather in the past year has damaged crops in Australia, Russia, and South America. Demand for corn for ethanol use has also contributed to the increase.

Prices rose 1 percent for apparel, the most in 21 years. Costs also increased for cars, jewelry, and consumer plastics.
 

·
Moderator
Joined
·
19,119 Posts
Mahalo for the update and reminder. I am working on this daily.
 
  • Like
Reactions: HappyMama

·
Registered
Joined
·
50 Posts
I just came from Aldi's doing a stockpile run. I didn't realize it looks strange to other people that see you in the store bc some little old lady in front of me said, my gosh dear do you have a restaurant? after I politely tell her no she decides that I MUST have a big family.

I don't understand how people can live with only a week's worth of food on hand in their house. it drives me nuts if I don't have at least a month's worth on hand.

thanks for the article
 

·
Registered
Joined
·
1,946 Posts
Discussion Starter · #5 ·
Hehe !! bustedparts you will laugh I was shown a house once with 3 cupboards in the kitchen. That wouldn't even hold my pots and pans, or appliances let alone a few days of food. The Realtor told me if you need more then one small cupboard for food you had issues. I liked her, her lifestyle, none of my business but she never cooked, ate out every night, had a children with "behavior issues", and was in tremendous debt . Once again her lifestyle and opinion but the result of her decisions on her bank account, and family health was not one I wanted to deal with.

I am not saying to over buy, hoard or whatever but to me she lacked common sense and the ability to see the forest for the trees. One small cupboard wouldn't hold my precious spices. .....lol just saying.
 

·
Registered
Joined
·
7,467 Posts
I have been having a hard time finding good deals, prices went up here around Christmas and I havent had a good sale since.
 

·
Registered
Joined
·
2,402 Posts
SO glad I have my stockpile. I regularly compare prices at Kroger, HEB, and WalMart. I ONLY purchase things on sale (loss leaders) and/or that I have a coupon for. I spent $24 yesterday and came out of the store with FIVE bags of food most of which was fruit and veggies.

I also frequent Big Lots when they offer 20% off and my local salvage store. I bought tons of dry dog food between Thanksgiving and the end of February because Pet Smart had it on sale and there were $5 off coupons in the bags.

So far I am doing really good dollar wise. This month I am putting $200 worth of groceries on my Discover card because they are giving me 5% cash back. I will pay the bill in full when it comes due.

I am spending more time and effort stretching my grocery budget, BUT it is paying off. My stockpile is in the best shape it has ever been in, it hasn't cost me an arm and a leg, and we are eating well.
 

·
Moderator
Joined
·
19,119 Posts
finding good deals is getting harder and harder here. I want to dehydrate - but there is nothing I can afford to dehydrate - but then, if I don't do it know the prices will be higher later. Okay - deep breath - one thing at a time.
 

·
Registered
Joined
·
50 Posts
Hehe !! bustedparts you will laugh I was shown a house once with 3 cupboards in the kitchen. That wouldn't even hold my pots and pans, or appliances let alone a few days of food. The Realtor told me if you need more then one small cupboard for food you had issues. I liked her, her lifestyle, none of my business but she never cooked, ate out every night, had a children with "behavior issues", and was in tremendous debt . Once again her lifestyle and opinion but the result of her decisions on her bank account, and family health was not one I wanted to deal with.

I am not saying to over buy, hoard or whatever but to me she lacked common sense and the ability to see the forest for the trees. One small cupboard wouldn't hold my precious spices. .....lol just saying.

:yikes: ONE cupboard for food :thud:

we had a pantry in our previous home, but not here. my pots and pans take up all but 2 cabinets. and those 2 cabinets are stuffed with food. I think the more "real food" cooking that you do, the more room you need. I have my flour, sugar, rice, and beans stored in huge 5 gallon buckets. they sit on a shelf in the dining room with the rest of our food since I ran out of room in the kitchen. my dream house would have a walk-in pantry :hat: but until then, my spices are still in a huge box jumbled all together since I can't figure out what to do with them.

I don't approve of the whole hoarding thing either. some of the coupon sites out there make some of us look bad. what exactly are you going to do with 200 toothbrushes if you aren't donating some of them? KWIM
 

·
Moderator
Joined
·
19,119 Posts
I use my downstairs linen closet for my extra pantry - works great - only need so many towels and sheets!!
 

·
Super Moderator
Joined
·
20,715 Posts
Interesting article. Thanks!

I just love it when they exclude gas and food in their hocus pocus numbers. That's only valid if those of us who live here in the real world can exclude those costs from our lives. Oops, can't. So who cares if other things aren't going up? We still have to buy gas, and buy things hauled to our local stores and/or produced with oil.

I have one cabinet for food... IN MY CAMPER! I agree, one little cupboard wouldn't even hold my spice and herb collection. I also have a walk-in pantry and I have to say it's a great storage space. I didn't think I wanted it when we looked at the model home, but I couldn't live comfortably without it now.

Who would even want to eat out every night? :yucky: Ew.
 

·
Registered
Joined
·
5,605 Posts
Hehe !! bustedparts you will laugh I was shown a house once with 3 cupboards in the kitchen. That wouldn't even hold my pots and pans, or appliances let alone a few days of food. The Realtor told me if you need more then one small cupboard for food you had issues. I liked her, her lifestyle, none of my business but she never cooked, ate out every night, had a children with "behavior issues", and was in tremendous debt . Once again her lifestyle and opinion but the result of her decisions on her bank account, and family health was not one I wanted to deal with.

I am not saying to over buy, hoard or whatever but to me she lacked common sense and the ability to see the forest for the trees. One small cupboard wouldn't hold my precious spices. .....lol just saying.
When I first read this I thought 3 cupboard = three pantries

Then I realized you meant 3 cabinets.

Then I understood.
 

·
Registered
Joined
·
2,372 Posts
My house came with a small pantry, very handy. Thanks for the article.
 
  • Like
Reactions: HappyMama

·
Registered
Joined
·
1,218 Posts
I just came from Aldi's doing a stockpile run. I didn't realize it looks strange to other people that see you in the store bc some little old lady in front of me said, my gosh dear do you have a restaurant? after I politely tell her no she decides that I MUST have a big family.

I don't understand how people can live with only a week's worth of food on hand in their house. it drives me nuts if I don't have at least a month's worth on hand.

thanks for the article
Me, neither. I've always been astonished when someone says "There is nothing in the house, I have to buy food."
 

·
Registered
Joined
·
1,218 Posts
Hehe !! bustedparts you will laugh I was shown a house once with 3 cupboards in the kitchen. That wouldn't even hold my pots and pans, or appliances let alone a few days of food. The Realtor told me if you need more then one small cupboard for food you had issues. I liked her, her lifestyle, none of my business but she never cooked, ate out every night, had a children with "behavior issues", and was in tremendous debt . Once again her lifestyle and opinion but the result of her decisions on her bank account, and family health was not one I wanted to deal with.

I am not saying to over buy, hoard or whatever but to me she lacked common sense and the ability to see the forest for the trees. One small cupboard wouldn't hold my precious spices. .....lol just saying.
This reminds me, our "good" Walmart has just started selling small cellophane bags of various spices at reasonable prices. It seems a good way to test spices you've never used and only need a bit of.
 

·
Registered
Joined
·
2,214 Posts
I am trying to stock up best I can on loss leaders. It definantly seems like we are seeing steep increases. And staples going on sale less often :(
 

·
Registered
Joined
·
1,946 Posts
Discussion Starter · #17 ·
Higher prices for food are about to get worse
Wholesalers paying more for food, suggesting higher prices to come at the grocery store

WASHINGTON (AP) -- Americans are noticing higher prices at the grocery store, and it's about to get worse.

Food prices at the wholesale level rose last month by the most in 36 years. Cold weather accounted for most of it, forcing stores and restaurants to pay more for green peppers, lettuce and other vegetables, but meat and dairy prices surged, too.

The big questions are how long food prices will keep rising and how high they'll go.

The impact is already visible. Wendy's, paying higher prices for tomatoes, now puts them on hamburgers only by request. Starbucks and Dunkin' Donuts have raised prices because they pay more for coffee beans. Supermarkets warn customers that produce may be of lower quality, or limited.

"It has thrown the whole industry into a tizzy," says Dan Bates, director of merchandising for the produce division of grocery chain Supervalu Inc.

Food prices rose 3.9 percent last month, the most since November 1974. Most of the increase was because harsh winter freezes in Florida, Texas and other Southern states, which damaged crops.

At the same time, global prices for corn, wheat, soybeans, coffee and other commodities have risen sharply in the past year. That's raised the price of animal feed, which has pushed up the cost of eggs, ground beef and milk.

Paul Ashworth, an economist at Capital Economics, says his firm has warned since last summer that spikes in commodity prices would eventually work their way down to wholesalers and consumers, "and here it is. There is plenty more to come over the next few months."

Crop prices began to increase last summer, after droughts slammed harvests in Russia and several other countries. Sharp growth in new world economic powers like India and China has also increased demand.

Overall, the producer price index, which tracks price changes before they reach the consumer, rose 1.6 percent in February, the Labor Department said Wednesday. That's double the rise from the previous month and the biggest increase since June 2009. The index is adjusted to account for seasonal variations.

More expensive food means people have less money for the casual spending that helps the economy grow and create jobs. And it adds to growing concerns about inflation down the road, still a worry two years after the Great Recession.

Another is the weak housing market, which most economists say is years away from a full recovery. The government said Wednesday that home construction plunged in February to the lowest level since April 2009 and the second-lowest in more than a half-century.

The stock market dropped sharply on the disappointing U.S. economic reports and growing concerns about Japan's nuclear crisis. The Dow Jones industrial average fell by more than 240 points, or 2 percent.

Hints of steeper food prices will likely show up in the government's report on consumer prices, due out Thursday. The consumer price index is forecast to rise 0.4 percent, the same as the previous two months, but the wholesale report caused several economists to warn it could be higher.

Many economists expect food prices to keep rising through the end of the year. Consumer food prices will be about 5 percent higher this fall than the previous time last year, according to RBC Capital Markets. That's up from the current annual pace of about 2 percent.

Food prices are already the highest since the U.N. began keeping track in 1990.

Corn prices have almost doubled since last summer, although they did dip this week after Japan's devastating earthquake and tsunami.

The harsh winter took a toll on restaurants, grocery stores and consumers. Normally if there is a shortage of one product in Florida, such as green peppers, companies can turn to Mexico or Texas. But all the major vegetable producing regions were harmed. That has led to everything from smaller heads of lettuce to higher prices for bananas and scarred fruit.

"This year was basically a perfect storm," says Supervalu's Bates, who hopes things will improve now that the spring growing season is almost here.

Ashley Sewell, who works three part-time jobs in Fort Worth, Texas, says she sees the difference when she goes out to eat or shop for groceries. She's an avid cook who used to wander the grocery-store aisles looking for inspiration. Now, she takes a list.

"I used to cook for my friends and neighbors. I can't do that anymore," she says.

Americans are also being hit by the highest gas prices in more than two years. The national average price Wednesday was $3.55 a gallon, up 42 cents from a month earlier, according to the AAA's Daily Fuel Gauge.

Still, the U.S. is mostly insulated from more devastating impact of higher food prices around the globe. Last month, the World Bank estimated that higher prices for corn, wheat and oil have pushed 44 million people into extreme poverty since last June.

Americans spend a much smaller portion of their budgets on food -- about 14 percent -- compared with 40 percent to 50 percent in developing countries. Labor makes up a bigger portion of food prices in the U.S., while in developing countries people are more likely to buy items like wheat to make their own bread, making them more susceptible to swings in commodity prices.
 

·
Registered
Joined
·
2,214 Posts
Is anyone else increasing the number of stores they visit weekly? I used to mainly stick to one store (Kroger). Now I find myself hitting Albertsons and Safeway for loss leaders weekly. I also hit Rite Aid weekly for the deals.
 

·
Registered
Joined
·
2,375 Posts
What do you guys suggest stocking up On?
 

·
Registered
Joined
·
2,402 Posts
YEP, used to be Kroger and a few things from WalMart with a biweekly trip to the salvage store and Big Lots. Now I have added HEB, Food A Rama, and Food Town. Oh and online Honeyville Grain and Emergency Essentials.

Is anyone else increasing the number of stores they visit weekly? I used to mainly stick to one store (Kroger). Now I find myself hitting Albertsons and Safeway for loss leaders weekly. I also hit Rite Aid weekly for the deals.
 
1 - 20 of 36 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top