The record-breaking levels of inflation we are going through currently has forced the cost of nearly all goods to skyrocket.
“The food at home index rose 10.8 percent over the last 12 months, the largest 12-month increase since the period ending November 1980,” reported the Bureau of Labor Statistics via its most recent data set on the Consumer Price Index. “The index for meats, poultry, fish, and eggs increased 14.3 percent over the last year, the largest 12-month increase since the period ending May 1979. The other major grocery store food group indexes also rose over the past year, with increases ranging from 7.8 percent (fruits and vegetables) to 11.0 percent (other food at home).”
As seen in these datasets, there is just no end in sight in the near future. As reported by the American Automobile Association, the price of gas is hitting record highs and then breaking those new records on an almost daily basis, while the price of diesel gas has climbed to a staggering $5.64 per gallon. This is the most egregious reason for the price increases we have seen because the vast majority of the good we buy reach us via trucks.
The natural consequence of all of this is that people are being forced to change the way in which they shop in order to make it through.
Just about half (42%) of all adults who were surveyed “are changing how they shop for groceries,” which included “opting for cheaper items, avoiding brand names and buying only the essentials,” discovered the BMO Real Financial Progress Index, which is a quarterly survey from Ipsos and BMO.
The most recent report discovered that “46% are either dining out less or consciously spending less when dining out.”
Additional findings included:
- 31% are driving less to deal with the painful cost of gas.
- 23% are spending less on vacations or just outright canceling them altogether.
- 22% are taking measures such as canceling subscriptions to the gym, cable, etc.
In regards to shopping for groceries, the survey discovered that almost half of all women “plan to adjust the way they shop for groceries (47% vs. 36% men), dine out less (49% vs. 43% for men), and 25% of women plan to cancel subscriptions vs. 20% of men.”
“Prices across the board – from cars and gasoline to groceries and other everyday essentials – are rising at the fastest pace since the 1980s. Consumers must think differently about their finances in this inflationary environment,” stated the head of consumer strategy for BMO Harris Bank, Paul Dilda, as part of a press release. “Seek advice from a financial expert on ways to successfully manage your personal finances, from learning ways to save and which types of accounts to use, to moving from knowing what you should do with your money, to actually doing it. By learning about what do to differently, and what not to change, during a period of inflation, consumers can maintain momentum toward their financial goals.”