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Grocery store prices continue to increase……

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My brother recently went to the grocery store with his wife. When he returned home he told me he was shocked at how expensive everything was. He normally does not do the shopping.

I do the vast majority of the grocery shopping in the Rourke household. I also pay very close attention to food prices – shopping sales and using coupons. I have seen the regular prices of many food items increase as much as 50% over the past 6 months or so. Now – sale prices are looking like the regular prices of old.

How long will this go on for? Opinions vary. I suspect inflation is going to continue for quite some time. By the way – when I say inflation I am talking real inflation – not the inflation that the government promotes. The government numbers do not count fuel and food prices in their calculations – crazy.

In the News:

Grocery prices are going up – WTOP 103.5 FM— http://www.wtopnews.com/?nid=25&sid=2105505

Food prices going up rapidly – KABC News — http://abclocal.go.com/kabc/story?section=news/national_world&id=7766637

Glenn Beck: Perfect Storm for Inflation: Corn, Oil Prices on the Rise – Fox News — http://www.foxnews.com/story/0,2933,602244,00.html

Prices for milk, beef, sugar on the rise – Dow Jones News Service — http://articles.sun-sentinel.com/2010-11-04/business/fl-food-prices-rising-20101104_1_prices-early-next-year-coffee-prices-grain-prices

Video:

So far in 2010 – here are a few key commodities and their price increases:

• Corn: Up 63%
• Wheat: Up 84%
• Soybeans: Up 24%
• Sugar: Up 55%

Corn, wheat and sugar are major components in thousands of products. Those products manufacturing costs are increasing. Manufacturers have a built in profit margin and can absorb minor price fluctuations – but nothing like this. As commodity and transportation costs continue to increase – so won’t food prices.

So – what do you do? Here are a few steps that I have been taking and recommend to reduce exposure to rising food prices:

1. Shop sales and buy in multiples so that you will have enough to last until it goes on sale again.
2. Use coupons to add to the savings of those items purchased on sale.
3. Use a stand alone freezer to purchase meats and other freezable items when purchased on sale in quantity
4. Shop warehouse food stores such as Costco and SAM’s buying in bulk to maximize savings
5. Grow your own food by starting a garden, and practice canning to store grown food

 Lot’s of evidence that things are going in a particular direction. It’s up to you to decide how to respond.

Rourke

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