In case you haven’t been paying attention or aren’t the one buying groceries in your family, consumers have been taking it in the shorts for a very long time when it comes to buying food and other basic goods because of inflation, which the government does it’s damndest to hide the numbers on.
Quite a few years ago many food producers started trying to hide their rising costs by selling their products in smaller portions and containers for the same price.
Now they are flat out saying they are going to raise prices, because they have to.
SEATTLE/BOCA RATON, Fla. (Reuters) – The drive for cost cuts and higher margins at U.S. trucking and railroad operators is pinching their biggest customers, forcing the likes of General Mills Inc and Hormel Foods Corp to spend more on deliveries and consider raising their own prices as a way to pass along the costs.
Interviews with executives at 10 companies across the food, consumer goods and commodities sectors reveal that many are grappling with how to defend their profit margins as transportation costs climb at nearly double the inflation rate.
Two executives told Reuters their companies do plan to raise prices, though they would not divulge by how much. A third said it was discussing prospective price increases with retailers.
The prospect of higher prices on chicken, cereal and snacks costs comes as inflation emerged as a more distinct threat in recent weeks. The U.S. Labor Department reported earlier this month that underlying consumer prices in January posted their biggest gain in more than a year.
On a related note, I see gas prices have stayed pretty steady around here at just under $3 a gallon.
The squeeze is going to be on for people who are already struggling.
This would be a very good time to start learning how to buy in bulk, where the best places are to do that and how to store it. The internet is your friend people, there are millions of articles and How To’s out there within easy reach with a quick internet search.
Just in the last six months, the name brand coffee I was buying to stick in the garage not only went up in price, the plastic container shrank considerably.
That is only one example.
According to that article most of the major food producers and packagers are going to raise the price on just about everything to pass their costs on.
Us consumers are at the end of the line with nowhere to go and will pay it, one way or another.