CITIZEN-TIMES.com:
As costs rise, consumers try
to stretch their dollars
By Angie Newsome
May
2, 2004 10:26 p.m.
LEICESTER - Elizabeth Walker pushed her
grocery cart down the refrigerated
aisle at GO
Grocery Outlet on Leicester Highway on Thursday morning,
sweeping past
Greg Brookshire, who was bent over slicing open boxes of new
products.
Dressed in a bright blue GO Grocery
shirt, Brookshire, a five-year
employee of the
discount grocery store, slapped $1.69 stickers on packages
of turkey breast
with the rapid- fire peck of his price gun.
Prices are going up, Brookshire said.
Having worked for five years at the
grocery store,
he should know.
"Milk's going to shoot up the roof
next week," he said, stacking the clear
packages on the
shelf. "The milk guy said this morning it's going to go up
50 cents next week.
It'll have to go on to us."
And it'll most likely end up on shoppers
like Walker, who nudged around
Brookshire as she inspected the bologna
and cheese.
With the increase in gas prices,
rumblings of inflation - often measured
by the change in
what customers pay for average goods and services
compared with
times past - have spread in recent months.
Local shoppers said prices on everything
from groceries to clothes are
going up, too.
To cope, they said they are depending
more and more on outlets and sales
to stretch their
dollars that, depending on where you are in the
mountains, may
or may not be keeping up with inflation.
Feeling the pinch all over
As Walker moved up the refrigerated
aisle, her friend LaVonne McBroom
pushed her cart
to a stand of greeting cards selling at two for 88 cents.
Walker said she and McBroom shop at GO
Grocery about once a week because
prices for milk
and meat make them shop around.
In March, the American Farm Bureau
Federation found that an average
16-item basket of groceries cost $3.78
more than at the end of last year.
At GO Grocery, Walker found a small tub
of sour cream for 39 cents.
"We used to go to this place way
across town," Walker said of the outlet,
which just
opened a new meat counter. "But now we don't have to."
While shoppers plan money-saving
strategies, costs for common grocery
items keep going
up.
"I'm surprised we haven't seen a lot
more inflation already," said Bob
Mulligan, associate
professor of economics at Western Carolina University.
Mulligan said the bulk of cost increases
are still on producers'
doorsteps, and
it could take up to a year for consumers to notice. While
he said there
has been a relatively fast growth rate in the past several
months,
inflation rates (frequently measured by the changes in prices for
average goods
and services bought by the consumer) have stayed around 3
percent for the
past 15 years.
But take vegetable oil. The Farm Bureau
found that by March, 32 ounces of
oil went up 48 cents since last year.
"It's not just here, it's
everywhere," said Delia Robinson, who shopped at
T.J. Maxx `n
more on Wednesday.
Are WNC wages keeping up with inflation?
It depends on where you live.
Information from the U.S. Bureau of Economic
Analysis showed the 2002
average wage per
job figures in the Asheville metro area fell behind both
the statewide
and national growth rate.
In the Asheville metro area, average
annual wages were $28,206 in 2003,
falling behind
statewide averages by more than $3,000 and behind national
averages by more
than $7,000.
Most recently, BEA found North Carolina
is falling behind in growing its
per capita
income figures. At 1.6 percent growth rate between 2002 and
2003, only Texas and Utah had less
growth, though the actual income figure
of $28,235 put
the state at 37th. Connecticut's personal income level
ranked first at
more than $43,000.
Does this match inflation?
In some locations, yes.
In the Asheville metro area, 2002 wages adjusted
for inflation
grew by more than $300 since 1998.
In Boone, they rose by more than $1,600.
But Brevard's average wage fell
the lowest, at
nearly $2,000 below inflation.
`That's some smart shopping'
That means that saving dollars isn't an
option for many.
While shopping for clothes at T.J. Maxx, Robinson said she eats less meat
and waits for
sales. She also hits the flea market early.
Clothes shopper Eleanor Cartin watches newspaper inserts for good prices
on food.
"I rarely buy anything not on sale,
as long as it's good quality. That's
the way you make
your retirement dollars stretch," Cartin said.
Sun Kyung Kim tries not to eat out as
much.
And McBroom said she tries not to use her
credit card.
"That's why they have stores like
this," McBroom said as she read the
greeting cards
at GO Grocery. "As long as you come here, it's not too
bad."
Walker rolled her cart to the checkout
line, and said she thinks she'll
spend $50 on her
food. As the two women unloaded their purchases on the
conveyer belt, Yalonda Mason rang them up.
Into plastic shopping bags go packages of
bacon and chicken, bottles of
lemon juice,
boxes of pasta, the tub of sour cream for 39 cents.
When Mason totaled up her purchases,
Walker smiled triumphantly.
"See," she said, "I told
you it was under $50. That's a lot of food."
"That's some smart shopping,"
Mason replied, loading Walker's 11 bags into
her cart.
Contact
Newsome at 232-5856 or ANewsome@CITIZEN-TIMES.com.
Making your grocery money last
Emergency trips to the store can blow your grocery budget. Besides
remembering not
to shop when you're hungry, these tips can help your food
dollars stretch:
Plan menus.
Knowing what you're going to cook can help you make smart
choices down
the aisles. Consider foods from which leftovers can be
prepared. Also
consider planning meals around food products being sold
at a discount.
Know what you need. Make a list of
items you use frequently, and buy
them on sale.
Know what you buy. Luxury and non-food
items may not be the wisest buys.
Do you need them,
or just want them?
Empty out the freezer and cupboards.
Are your shelves full? Instead of
buying more
items, use what you've got. For example, use those cans of
beans for taco
salad.
Buy in bulk. If you can pay more
up-front, consider buying larger
quantities of
food items. Dividing larger packages of meat can save
money in the
long run, for example. It may take more time at first, but
you can save
money in the end.
Make double portions. For example, you
can make extra portions of
pancakes and
waffles and freeze the rest for later.
Make your own convenience items. For
example, many spice and vegetable
mixes are
combinations of common ingredients. With a little time and
smart
shopping, you can make your own.
For more help, visit your local library
or the Consumer Credit Counseling
Service of Western
North Carolina.
Sources:
http://wv.essortment.com/grocerybudget_rqcg.htm and Celeste
Collins of Consumer Credit Counseling
Service of Western North Carolina
Inflation:
What is it?
Inflation is the overall general increase
in the price of average goods
and services.
The Consumer Price Index - or the measure of what consumers
pay for
day-to-day goods and services today versus years past - is most
frequently used to determine inflation rates. For the past
15 years, the
CPI has increased about 3 percent every
year. In the first part of 2004,
the rate rose.
To find out more, visit
www.bls.gov/bls/inflation.htm.
Source: The Bureau of Labor Statistics
and Bob Mulligan, associate
professor or
economics at Western Carolina University.
Feeling a pinch at the gas pump? Consider
your grocery bill, too.
A recent American Farm Bureau Federation Marketbasket Survey found overall
higher food
prices in the first part of 2004, compared to the end of 2003.
Here are some examples:
Grocery item Cost increase Average price
Apples 24 cents $1.22 per pound
Whole fryers 22 cents $1.24 per pound
Eggs 19 cents $1.57 per dozen
Cheddar cheese 9 cents $3.46 per pound
Source: American Farm Bureau Federation,
www.fb.com.
©
2004 Asheville Citizen-Times • 14 O. Henry Ave., Asheville, NC 28801 •
Phone:
828-252-5611.