High prices at the gas pump have been grabbing headlines, but it’s rising costs at the supermarket that are really starting to take a bite out of household budgets. The component of the consumer price index that tracks grocery prices, known as the food at home index, jumped 0.5% in May from where it stood in April, calculated on a seasonally adjusted basis. Meanwhile, the gasoline-index component of the CPI fell 2.0% in May, the first decline since June 2010.
Food prices have been creeping up all year. According to the latest American Farm Bureau Federation Marketbasket Survey, 14 of the 16 supermarket staples it tracks have increased in price between the first and second quarters of 2011. Boneless chicken breasts (down 7%) and shredded cheese (down 1.5%) are the only two grocery items that cost less than they did three months ago.
Here are the 14 common grocery-list items from the Marketbasket Survey that have climbed in price since the first quarter, as well as the USDA’s latest projections for food-cost increases in 2011. As a bonus, we’ve thrown in a few tips on how to save on these grocery items.
Russet potatoes
Current average price: $3.07 for a 5-pound bag
Price change (from Q1): up 43 cents
Percent change: 16.3%
Projected change for 2011: 4.5%-5.5%
Savings tip: Make the most of a bargain 20-pound sack of spuds. Mashed, fried, baked or roasted, potatoes are filling and can stretch a meal budget. Store in a dark, cool place to keep fresh longer.
Sponsored Content
Sirloin tip roast
Current average price: $4.48 per pound
Price change (from Q1): up 52 cents
Percent change: 13.1%
Projected change for 2011: 7%-8%
Savings tip: Minimize your mealtime costs and make your cardiologist happy by going meatless twice a week. A family of four can save $624 annually by becoming part-time vegetarians.
Sponsored Content
Bacon
Current average price: $4.18 per pound
Price change (from Q1): up 32 cents
Percent change: 8.3%
Projected change for 2011: 6.5%-7.5%
Savings tip: Get a better deal by buying your bacon in bulk from a warehouse club. Put your extra slabs of pork in re-sealable plastic bags and stash them in the freezer. Bacon defrosts rapidly.
Sponsored Content
Apples
Current average price: $1.56 per pound
Price change (from Q1): up 11 cents
Percent change: 7.6%
Projected change for 2011: 3%-4%
Savings tip: Buy apples by the bagful rather than individually to reap a lower unit cost. Stow your Granny Smiths and Red Deliciouses in the refrigerator to keep them crisp and juicy.
Sponsored Content
Sliced deli ham
Current average price: $5.26 per pound
Price change (from Q1): Up 35 cents
Percent change: 7.1%
Projected change for 2011: 6.5%-7.5%
Savings tip: Ask your local butcher for the lunchmeat ends that may otherwise go to waste. They’re cheaper than a pound of deli meat and just as tasty in your brownbag lunch.
Sponsored Content
Ground chuck
Current average price: $3.29 per pound
Price change (from Q1): up 19 cents
Percent change: 6.1%
Projected change for 2011: 7%-8%
Savings tip: Instead of buying ground beef, purchase a chuck roast on sale and grind it yourself. It’ll taste the same -- or perhaps better, considering the money you’ll save -- and allay your mystery-meat fears.
Sponsored Content
Whole milk
Current average price: $3.62 per gallon
Price change (from Q1): up 16 cents
Percent change: 4.6%
Projected change for 2011: 5%-6%
Savings tip: Reserve your regular milk for your morning bowl of cereal. For recipes that call for it, use the less expensive powdered version instead. Just add water. You won’t taste the difference.
Sponsored Content
Vegetable oil
Current average price: $3.01 for a 32-ounce bottle
Price change (from Q1): up 13 cents
Percent change: 4.5%
Projected change for 2011: 6%-7%
Savings tip: If you normally use expensive extra virgin olive oil for cooking, opt for a lower grade instead. Scan your supermarket shelves for bottles labeled simply “olive oil.”
Sponsored Content
Toasted oat cereal
Current average price: $3.17 for a 9-ounce box
Price change (from Q1): up 12 cents
Percent change: 3.9%
Projected change for 2011: 3.5%-4.5%
Savings tip: Try your grocer’s store-label equivalent or buy a generic version of your favorite morning munchies. If you can’t live without name brands, look for coupons in the Sunday newspaper.
Sponsored Content
Eggs
Current average price: $1.65 per dozen
Price change (from Q1): up 3 cents
Percent change: 1.9%
Projected change for 2011: 4.5%-5.5%
Savings tip: Visit your farmers market near closing time for a better deal on fresh, locally produced eggs. At day’s end, vendors are more likely to slip something extra into your bag.
Sponsored Content
Orange juice
Current average price: $3.18 for a half-gallon
Price change (from Q1): up 4 cents
Percent change: 1.3%
Projected change for 2011: 3%-4%
Savings tip: Head to the frozen foods aisle for cheaper-per-ounce and just-as-refreshing orange juice concentrate. Add water, stir and enjoy the very same vitamin-C rush.
Sponsored Content
Bread
Current average price: $1.86 for a 20-ounce loaf
Price change (from Q1): up 2 cents
Percent change: 1.1%
Projected change for 2011: 3.5%-4.5%
Savings tip: Pounce whenever your grocery store or bakery has a two-for-one sale. Eat one loaf immediately -- French toast for breakfast, sandwich for lunch and grilled cheese for dinner -- and freeze the other for later.
Sponsored Content
Bagged salad
Current average price: $2.67 per pound
Price change (from Q1): up 1 cent
Percent change: 0.4%
Projected change for 2011: 3%-4%
Savings tip: Go online to find discounts for popular brands of bagged salad. Check Facebook and Twitter pages for printable coupons, and subscribe to e-mail alerts for special deals.
Sponsored Content
Flour
Current average price: $2.52 for a 5-pound bag
Price change (from Q1): up 1 cent
Percent change: 0.4%
Projected change for 2011: 3.5%-4.5%
Savings tip: Unless you’re an avid baker, you probably don’t use much flour. If that’s the case, only buy what you need when you need it from a bulk bin. Don’t let your money sit idle in the pantry.
Sponsored Content
Sponsored Content
-
I'm retired with $2.2 million saved and work 2 retail shifts a week for fun. My young colleague just got her hours cut, and I don't need the money. Should I quit so she can have my shifts?We asked certified financial planners for advice.
-
Could an Annuity Be Your Retirement Safety Net?More people are considering annuities to achieve tax-deferred growth and guaranteed income, but deciding if they are right for you depends on these key factors.
-
Older Taxpayers: Don't Miss This Hefty (Temporary) Tax BreakIf you're age 65 or older, you can claim a "bonus" tax deduction of up to $6,000 through 2028 that can be stacked on top of other deductions.
-
21 Last-Minute Gifts for Grandparents Day 2025 to Give Right NowHoliday Tips Last-minute gifting is never easy. But here are some ideas to celebrate Grandparents Day.
-
Texas Sales Tax-Free Weekend 2025Tax Holiday Here's what you needed to know about the Texas sales tax holiday.
-
Alabama Tax-Free Weekend 2025Tax Holiday Here’s everything you need to know about the 2025 back-to-school Alabama sales tax holiday.
-
What to Do With Your Tax Refund: 6 Ways to Bring GrowthUse your 2024 tax refund to boost short-term or long-term financial goals by putting it in one of these six places.
-
What Does Medicare Not Cover? Eight Things You Should KnowMedicare Part A and Part B leave gaps in your healthcare coverage. But Medicare Advantage has problems, too.
-
15 Reasons You'll Regret an RV in RetirementMaking Your Money Last Here's why you might regret an RV in retirement. RV-savvy retirees talk about the downsides of spending retirement in a motorhome, travel trailer, fifth wheel, or other recreational vehicle.
-
The Sweet 23: States Where Twix and Kit Kat Avoid the ‘Candy Tax’State Taxes There’s something spooky this Halloween, and it’s not just the ghouls. Find out if your state’s sales tax takes a bite out of sweet savings.
-
Florida Back-to-School Tax-Free Holiday 2025Sales Taxes The new tax-free holiday in Florida brought month-long savings on computers, clothing and other school supplies.
