It’s amazing how something as simple as bio-diesel can cost us money at the store. When we have to compete with our food source for things like fuel, the prices go up.
You can see the direct results in things like bakeries. Around here, a famous wedding cake shop had to close up his store because he had quoted brides a certain price per slice and the cost of the ingredients more than ate up his profit. He had contracts and couldn’t go back and raise the price…a problem when you pre-sell a service 1-2 years in advance.
Now add the fact that fuel costs are rising again. Our gas pumps jumped $.15 in one day! The cold winter and predicted heavy snow fall are going to add more to the bill and that effects transportation costs for food.
Now add the commodities markets – they are going up and all the “experts” are predicting food price increases too.
This means a serious OUCH for us at the stores! All of these costs will add up and be passed on to us, the consumers.
I predict one of three things:
1) They will simply raise prices on things.
2) They will lower the coupon values
3) They will make package sizes smaller and charge the original price.
This last item happened a few years ago with sugar. We pay the same price for a 4# bag that we used to for a 5# bag. Ice cream containers have shrunk – that is why Tupperware no longer carries that “half gallon” ice cream container. No one really makes a half gallon any more, it is 1.75 or 1.5 gallons.
Some bargain – not!
THIS is the time to watch package sizes, stock up on long term pantry basics and try to ride out the upcoming wave of more expensive items. Us “frugalistas” have to hang in there and work our way around it all.
Since they just printed a whole bunch of money last week — we will see the effects pretty fast (sad to say) — so, if you have NOT been coupon clippin’ – you might want to start!