Americans who expected their finances to improve after the first few waves of the coronavirus pandemic may be facing an onslaught of unwelcome surprises—and price increases on grocery items aren’t helping anyone’s financial situation.
Though some workers have received pay increases, their salaries aren’t keeping up with widespread inflation. And inflation has pushed up rent and cost of living expenses, which is curbing some households’ ability to save money.
No food category saw a price decrease in 2021 compared to 2020, according to the United States Department of Agriculture (USDA). And the department predicts food prices to rise a total of 5% to 6% in 2022, according to its April report.
For consumers who were already cash-strapped, record inflation leads to even more pressure to rein in spending and juggle strained budgets.
Debra Quinton says it’s been challenging to help her clients at Family Service of Rhode Island get the supplies they need for their growing families. As director of the First Connections program, Quinton works with low-income households that are expecting a new baby or have kids under three years old. “Right now, we’re kind of in triage mode when it comes to food and formula,” she says.
“People are still getting back on their feet after Covid, either still trying to return to work or access childcare so they can work,” she adds. Supply chain issues create inconsistencies on the grocery store shelves, she says, and when items are in stock, “the prices are all astronomical.”
When your budget is already lean, much of the conventional advice for saving at the register can seem callous.
Americans Anxious About Rising Grocery Costs
Rising grocery costs are creating anxiety for an increasing amount of American households.
Global enterprise technology firm Morning Consult found 16.5% of U.S. adults weren’t confident in their ability to pay their monthly grocery bill in March 2022, compared to 8% in March 2021.
For households with incomes under $50,000 annually, that uncertainty rose to 19%.
The research arm of grocery giant Kroger reported in April that more than half of consumers are cutting back on snacks and candy at the grocery store, and about half are buying fewer drinks like soda or juice. Shoppers are also cutting back on fresh bakery items, as well as hair products and cosmetic items.
In the most severe cases, households may be making considerable sacrifices due in part to the rising cost of food, like picking and choosing which bills to pay on time each month.
In April, about 11% of American households said they sometimes or often didn’t have enough to eat, according to data from the Census Bureau, compared to 8% of households a year prior.
“Getting connected with food resources is a top priority for a lot of the families that we speak to,” says Quinton. “It used to be the poorest of the poor, the lowest income families. But it’s no longer just them.” Middle-income families are increasingly a part of her program’s case load.
Why It’s So Hard to Reduce Grocery Spending
To cut back on spending, it’s helpful to understand what has increased in price and by how much. But this can be difficult to ascertain, says Joe Redden, professor of marketing at the University of Minnesota Carlson School of Management.
“When I’m buying a bunch of groceries in the store, I check out and I see a big number at the end,” he says. “It makes it even hard to tell with any one item what’s happening.”
The combined impact of those various price changes makes it harder to be vigilant about your grocery spending. You might notice your total bill go up, Redden says, but look at your receipt and struggle to understand what to leave behind next time you shop.
Though some grocery categories have seen relatively modest price increases—like fresh vegetables, which are about 6% more expensive than they were last March—other items have seen far higher increases. Milk is 13% more expensive than last spring, and beef prices are up 16% over last year.
Read more: Why Is Inflation So High?
Supply chain issues and shrinkflation add to the confusion for today’s shoppers. You may not always have the same items on the shelf from which to choose, and varied product sizing among brands requires you to work hard to make comparisons.
Consumers who don’t have their own transportation or work several jobs may not have the time or means to shop around at several stores. And online shopping may be out of reach for households relying on assistance to pay for groceries—retailers have only just begun to roll out online ordering for customers paying with WIC, for example.
One shopper told Forbes Advisor reporter Kelly Anne Smith that they use self-checkout to avoid the embarrassment of having to take items off their order when the total gets too high.
“This is not just one segment of the population,” dealing with food affordability, Quinton says. “This creeps into every single thing.”
To Save on Groceries, Go Back to Math Basics
Grocery stores are still running sales, Redden says, which can offer significant savings.
If you see an item on sale that’s a staple in your household, try to buy several so you have it on hand later, he says. This tip may not apply to highly perishable items, but may be useful for stocking up on canned or frozen vegetables, or shelf-stable items.
He says that when it comes to saving on groceries, there’s no “one size fits all” solution. You may find that you can easily switch to a lower-priced store brand of a certain product and be just as happy with the quality.
For other categories where the brand-name is a must-have, decreasing your portions may help you enjoy your favorites without giving them up altogether.
To make comparison shopping easier, zoom in on the unit price that’s often listed on the shelf price tag for an item.
The unit price tells you the price per ounce, pound, or other form of measurement. If you’re comparing brand-name to in-house labels, or bulk packages versus smaller sizes, the unit price can help you make heads or tails of all the details with a quick glance.
If you’ve already reduced your grocery spending and still can’t make ends meet, it may be time to ask for help. Some food banks have dropped income or household size requirements to access free food. You may also be eligible for other financial assistance programs to help you pay bills like rent or utility charges, to free up some cash to buy groceries.
