After 2011's Grocery Price Surge, Is Cooking at Home Still a Bargain?

[Shadow]

After going grocery shopping this morning...I'm beginning to wonder. $20.00 for a pkg of steaks? $ 11.00 - $15.00 for carne asada meat? $ 9.00 for a pkg of chicken breasts? Crazy. I also noticed cereal was up this week too. grrr.



Everybody knows the basic rules for saving money on food. Don't eat out. Ditch the steaks in favor of ground beef. Stick to the staples, like milk and potatoes. But a recent USDA report shows that, in 2011, some traditional money-saving guidelines proved useless as food prices went through the roof.

On average, increasing global demand and rising commodity and fuel costs drive grocery costs up by about 2.9% per year (http://www.wnyc.org/npr_articles/2012/jan/04/when-budget-foods-start-to-eat-away-at-the-wallet/), but in 2011, they rose by an estimated 4.25% to 4.75% (http://www.ers.usda.gov/briefing/cpifoodandexpenditures/consumerpriceindex.htm). And while prices went up across the board, the cost increase on staples was especially sharp. For example, prices for ground beef -- one of the classic economizing ingredients -- went up by a staggering 10.2%, as did the price of eggs. Meanwhile, turkey, another classic source of cheap protein, went up by 10.5%.

And those were hardly the only groceries whose costs went through the roof. Milk prices rose (http://www.ers.usda.gov/briefing/cpifoodandexpenditures/consumerpriceindex.htm) by almost 10%, and ice cream went up by 10.3%. Apples cost about 9.6% more, and potatoes rose by a shocking 12%. Prices on fats and oils also went crazy, with a huge 11.1% increase.



See full article from DailyFinance: http://srph.it/xGPEpy

[Gunny]

After going grocery shopping this morning...I'm beginning to wonder. $20.00 for a pkg of steaks? $ 11.00 - $15.00 for carne asada meat? $ 9.00 for a pkg of chicken breasts? Crazy. I also noticed cereal was up this week too. grrr.



Everybody knows the basic rules for saving money on food. Don't eat out. Ditch the steaks in favor of ground beef. Stick to the staples, like milk and potatoes. But a recent USDA report shows that, in 2011, some traditional money-saving guidelines proved useless as food prices went through the roof.

On average, increasing global demand and rising commodity and fuel costs drive grocery costs up by about 2.9% per year (http://www.wnyc.org/npr_articles/2012/jan/04/when-budget-foods-start-to-eat-away-at-the-wallet/), but in 2011, they rose by an estimated 4.25% to 4.75% (http://www.ers.usda.gov/briefing/cpifoodandexpenditures/consumerpriceindex.htm). And while prices went up across the board, the cost increase on staples was especially sharp. For example, prices for ground beef -- one of the classic economizing ingredients -- went up by a staggering 10.2%, as did the price of eggs. Meanwhile, turkey, another classic source of cheap protein, went up by 10.5%.

And those were hardly the only groceries whose costs went through the roof. Milk prices rose (http://www.ers.usda.gov/briefing/cpifoodandexpenditures/consumerpriceindex.htm) by almost 10%, and ice cream went up by 10.3%. Apples cost about 9.6% more, and potatoes rose by a shocking 12%. Prices on fats and oils also went crazy, with a huge 11.1% increase.



See full article from DailyFinance: http://srph.it/xGPEpy



I've found out we can just about as cheap eating out. When you figure in the cooking and cleanup man hours, it's almost worth it to buy stock in a restaurant.

[Gaffer]

The dark one promised higher fuel costs and higher utility costs. Those two things alone will drive up the costs of everything else we buy. No domestic production of anything and no middle east war for oil means we haven't begun to see the increases in food prices.

[Shadow]

I've found out we can just about as cheap eating out. When you figure in the cooking and cleanup man hours, it's almost worth it to buy stock in a restaurant.

Ain't that the truth. Plus, it really doesn't matter a whole lot where you go anymore either. Fast food damn near costs as much as a nicer family restaurant does too.

[MtnBiker]

I've found out we can just about as cheap eating out. When you figure in the cooking and cleanup man hours, it's almost worth it to buy stock in a restaurant.

Awesome! Spread the word!

[MtnBiker]

QE2 certianly had some effect on food prices as well. The Fed printed alot of money and that created more dollars chasing fewer goods. I believe we are also seeing market effects from ethonal. You take food inventories away from food consumption and shift it toward energy consumption it is going to have an effect on food prices.

[Shadow]

QE2 certianly had some effect on food prices as well. The Fed printed alot of money and that created more dollars chasing fewer goods. I believe we are also seeing market effects from ethonal. You take food inventories away from food consumption and shift it toward energy consumption it is going to have an effect on food prices.

Made me think of another thing I learned this week. Did you know they are now using corn to make carpet? A friend just bought some for her house...she loves it (apparently it's very soft). Not sure what ever made them think to use corn though.

[MtnBiker]

Made me think of another thing I learned this week. Did you know they are now using corn to make carpet? A friend just bought some for her house...she loves it (apparently it's very soft). Not sure what ever made them think to use corn though.

Yeah, but how does it taste?

Corn is increasingly being used as a subsititute for petroleum products, such as plastic cups and forks. It is seen as an "eco friendly" product. But there is still an impact on the environment to plant, harvest and develop these products.

[Shadow]

Not sure how it tastes (doubt I will find out anytime soon either lol)...but learned that they melt down the corn to corn starch and then to plastic fibers as thin as a stand of hair. Then they use the fibers to make yarn. Kind of interesting in a way.

One of her main reasons for buying it was because it allegedly "decreases our dependance on foreign oil". It also allegedly "reduces CO2 emissions".

Very liberal of her. Wonder if it costs a lot more too?

[Dilloduck]

and she uses the cobs for TP too ?

[ConHog]

Not sure how it tastes (doubt I will find out anytime soon either lol)...but learned that they melt down the corn to corn starch and then to plastic fibers as thin as a stand of hair. Then they use the fibers to make yarn. Kind of interesting in a way.

One of her main reasons for buying it was because it allegedly "decreases our dependance on foreign oil". It also allegedly "reduces CO2 emissions".

Very liberal of her. Wonder if it costs a lot more too?

Someone should tell her that corn is a negative sum energy source . LOL

[Shadow]

and she uses the cobs for TP too ?

Naw... she probably uses recycled toilet paper. Not sure which kind though...made with 50% or 80% post consumer product? :)