Why are Grocery Prices Rising Across the United States?
Let’s face it- food is expensive, and your paycheck doesn’t stretch as much as it used to. Food prices are the highest in decades and many Americans who live paycheck to paycheck struggle to keep up with common household expenses. Whether you are upper, middle, or lower class, your grocery prices are rising. According to the Bureau of Labor Statistics, food prices increased by 13.5% in 2022, a record high that hasn’t been seen since 1979.
Several factors contributed to the rise in grocery prices across the United States in 2023, including the following:
- The Residual Economic Impacts Of The Global Recession
- Increased Demand
- Bad Weather Affecting Crops
The biggest culprit is inflation. Inflation occurs when the average price level of goods and services in an economy increases over time due to a decrease in the purchasing power of the currency. Goods and services include food, housing, transportation, and healthcare.
Regardless of why grocery prices are rising, this shift has affected the budgets of millions nationwide. And, in fact, the world! If you are struggling to pay for common household expenses, you are not alone. Many Americans are dreading their bi-weekly trip to the grocery store. They could also be searching for different ways to make money on the side! Keep reading to learn more about how to deal with grocery prices rising in the United States.
When Will Food Prices Go Down?
The United States Department of Agriculture recently speculated that food prices will not decline in 2024 but may start decelerating. They attribute the continuing high prices to factors such as supply chain disruptions, labor shortages, and higher production costs for farmers.
This prediction is just that- a prediction based on data and current market trends, so it is subject to change. But, it is important to prepare for the worst. You should learn how to create an effective budget to deal with the fact that grocery prices are rising.
How Can I Budget for Rising Grocery Prices?
Budgeting for rising grocery prices can be challenging, but being strategic about what and when you purchase can help ease the burden. If you do not already have a budget in place for your groceries, it is time to create one! The Motley Fool recently estimated that the average family of four spends around $967.70 per month on groceries. This is, of course, assuming that they strive to eat a balanced diet.
Whether you have a large family or live alone, it is important to budget for groceries in this day and age.
Set aside a portion of your income each month toward groceries and consider food as an essential expense. If you haven’t done so already, take a look at your spending habits throughout the past few months. How much do you consistently spend on groceries? Are there any areas in your budget
Some other essential tips to budget for rising grocery prices include:
- Shopping at everyday-low-price supermarkets, which have been shown to adjust their prices more gradually in response to price changes.
- Planning your meals in advance and creating a shopping list are essential tips to avoid impulse purchases.
- Shopping at different grocery stores in order to compare prices and take advantage of sales and discounts.
- Buying in bulk or stocking up on non-perishable items, such as canned goods, that are on sale.
Other Budgeting Tips to Keep in Mind When Grocery Prices are Rising
Considering alternative sources of food, such as local farmers’ markets or community gardens. You may also want to try eating plant-based meals to avoid the high cost of meat products.
In addition, if you are a low-income family, try to structure your food purchases around times when you have more financial flexibility and focus on foods that provide both health benefits and value.
What Can I Do if I Need Extra Money for Household Expenses?
If you need extra money for household expenses, there are several options you can explore. Consider a few of the following:
- Get Another Job: You can try to get another job to supplement your income or explore freelance or gig work opportunities. If you are looking into freelance work or a second job on the weekends, it is important to consider the pros and cons. You may make a decent amount of extra cash to handle grocery expenses. But it may also impact your work-life balance and overall well-being.
- Reach Out to Nonprofits or Government Assistance Programs: Another option could be to apply for government or nonprofit assistance programs designed to help low-income families with food and other necessities, such as the Supplemental Nutrition Assistance Program (SNAP) in the United States.
- Consider a Loan: If you have a lot of debt, it can be tough to manage your finances on your own. You may want to consider consolidating your debt or taking out a personal loan to help alleviate the financial strain. Loan proceeds from a personal loan can be used to handle a variety of financial issues outside of debt consolidation, however. It is important to carefully consider the terms and interest rates of any loan before making a decision.
Ultimately, the decision is up to the individual. Be smart about your shopping habits and get the help you need when you need it!
Whether you need to apply for benefits, try to get a loan, or get a second job, there’s no shame in helping yourself get back on your feet.
Learn More About Getting Emergency Cash for Household Expenses
Whether you need extra cash to consolidate your debt or pay for household expenses, a personal loan or a cash advance could be a viable option to consider. If you’re ready to explore that option, Max CashⓇ is here to help guide you through it! Learn more about personal loans and cash advances by calling 855-207-9052 today.
