Most of us watched prices of many items increase, all of us are feeling the effect of higher costs. The Bureau of Labor Statistics reported overall price increases in the economy at 0.6% in March. While this may seem to be a minor increase keep in mind that if sustained at the same rate the price increases would amount to 7.2% an annual basis and few of us are seeing this type of increase in our income.
NBC News Reports the price of fruits and vegetables have increased 2% since February of this year while the index for fish, meat, eggs, and poultry increased 0.4%. Before you slough off what seemed like a slight increase on an annual basis these protein items would be increasing 4.8%, enough to impact any family’s budget.
Additionally, food eaten outside the home increased in price 3.7% and what is called limited-service meals, which include takeout and delivery increased a whopping 6.5% for the year.
Throughout much of the world much larger food cost increases in food costs are impoverishing those who already were living on the edge, with 7 million starving in East Africa.
Energy costs increased over the past year by 13.2%, led by gasoline's huge gain of 22.5%, with 9% of the gasoline increase in March alone.
In the current economy some products are increasing faster than others, lumber is a significant example up 300% this past year and is beginning to significantly impact the new housing market. Eighteen months ago, a $400,000 single-family home contained about $35,000 of lumber but today the same amount of lumber cost $80,000.
The calculation for calculating the Consumer Price Index (CPI) changed after 1980, if the same method was used today the CPI would increase by 10%
The chart below demonstrates how the Federal Reserve Bank has increased the money supply to help finance the stimulus spending.
Food prices are expected to increase over the next year. Amos wrote about a Time in the past when, “…We may make the ephah small and the shekel great…” Amos 8:5.
Given food is a necessity for each family and food costs are likely going to be increasing we have an opportunity to institute some principles which will help us during the coming year such as:
Buy staples and groceries, you use on a regular basis as far in advance as possible to get ahead of future price increases
Make a meal plan for the week in advance
Prepare a specific shopping list for the grocery store, and don’t add impulse items to your purchases
Use less prepared food which is more expensive,
Utilize crock pots to cook dinner while you may be away
Stock up when items are on sale that you use on a regular basis
By larger quantities of foods, at a reduced price, then divide and freeze in small units
Consider substitutions such as less costly cuts of meat or adding beans to recipes which is an inexpensive way of adding protein
Freeze leftovers before they go bad so they can be eaten later
Use these ideas to reduce your food expenses in the future and check out the
Christian Emergency Network and become a Ready Christian ready to respond in all emergencies, large and small.
No comments:
Post a Comment