Households finally got some relief from skyrocketing inflation this week after it appeared that grocery prices were starting to fall.
Figures from the Bureau of Labor Statistics show food costs rose 8.5% in the year to March 2023, down from a previous high of 9% in September.
But don’t be fooled by the positive headlines: Inflation is still well above the Fed’s 2% target — and many products are still very expensive.
The good news is that there are easy trade-offs consumers can make to cut hundreds of dollars off their annual grocery bills.
For example, the cost of frozen vegetables increased by 20.1 percent, the price of eggs increased by 36 percent, and flour increased by 17.5 percent. However, fresh fruit is cheaper than it was a year ago, down 1.5 percent, while the cost of bacon is down 5.5 percent.
Here WhatsNew2Day.com explains the best must-haves to beat the high prices…
Replace poultry with beef
Government data shows the average cost of chicken and poultry rose 7.5 percent in the year to March.
However, red meat prices are on the decline. The price of beef and veal fell 1.9 percent in March.
The price of beef steaks surprisingly decreased by 0.7 percent, while the price of uncooked roast beef decreased by 4.4 percent.
Separately, the cost of bacon and related products fell 5.5%.
While this does not necessarily mean that red meat is cheaper than chicken in the supermarket, it does mean that it may be better for the money.
The US Bureau of Labor Statistics showed that the average cost of chicken and poultry rose 7.5 percent in the year through March. However, beef and veal decreased by 1.9 percent
Replace the butter with margarine
It’s an age-old debate: Should you eat butter or margarine? It may be a long way off, but the latest numbers suggest that butter is a better value bet.
Both margins have become victims of inflation, with margarine producers blaming Russia’s invasion of Ukraine for disrupting production of its main ingredient, which includes vegetable oils.
Meanwhile, dairy farmers have significantly reduced their flocks during the pandemic and are now struggling to keep up with demand.
The cost of butter rose 8.7 percent in March from a year earlier. However, margarine went up a more painful percentage, at 33.4 percent.
Both margarine and butter have been victims of sweltering heat over the past 20 months. The cost of butter rose 8.7 percent
Replace frozen vegetables with fresh
Used to buy frozen vegetables to reduce costs? Now might be the time to stop.
The cost of frozen vegetables rose 20.1 percent in the year to March while fresh vegetables increased 1.4 percent.
Even canned vegetables increased by 9.3 percent.
Among the vegetables least affected were lettuce – which increased by just 1.2 percent amid rising inflation – and tomatoes, which increased by 0.3 percent.
However, it should be noted that fresh vegetables have a much shorter shelf life.
The cost of frozen vegetables rose 20.1 percent in the year to March while fresh vegetables increased 1.4 percent
Replace canned fruit with fresh
Fresh produce has kept prices low despite inflation wreaking havoc on all other supermarket shelves.
The cost of fresh fruit is down 1.5 percent from last year’s prices, but canned produce is up 11.6 percent.
The difference is due in part to the way canned fruit is packaged and produced compared to fresh produce.
The cost of fresh fruit is down 1.5 percent from last year’s prices, but canned produce is up 11.6 percent.
Drink beer in pubs – and wine at home
Alcohol has long been considered recession-proof, and shoppers can still be expected to indulge no matter how difficult economic conditions get.
But as prices rise, households may tend to change their choices.
The cost of wine consumed in bars and restaurants rose 6.9 per cent last year while beer increased by a more modest 5.5 per cent.
But inside the house, wine seems to be the cheaper bet.
Wine purchased from shops increased by 2.7 percent, while beer increased by 6.1 percent.
The cost of wine consumed in bars and restaurants rose 6.9 percent last year while beer increased by a more modest 5.5 percent.
Substitute white bread for alternatives
White bread was among the products hardest hit by high inflation.
In the year ending March 2023, the cost increased by 16.5 percent. In comparison, the number of “non-white bread” increased by 13.8%.
The cost of bread was negatively affected by the rise in the price of flour, which rose by 17.5 percent.
Flour is particularly vulnerable to rising prices, with nearly a third of the world’s supply coming from Russia and Ukraine.
Reserve whole milk and avoid substitutes
The cost of whole milk rose by 4.3 percent, according to government data. Relatively low fat milk increased by 6.5 percent.
The cost of a pint of milk has long been considered the hallmark of how well an economy is doing.
Milk as a whole rose 5.5 percent last year. However, the whole milk was slightly better than the leaner additive.
The cost of whole milk rose by 4.3 percent, according to government data.
Relatively low fat milk increased by 6.5 percent.
