I now have less money than I've ever had and my lifestyle is no more extravangant than it was a few yrs ago when I seemed to be able to save a few quid.
groceries
Price rises in UK :
http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2007/11/13/ncosts113.xml
1) shortages caused by the awful summer weather, crops got ruined, or weren't planted.
http://news.scotsman.com/topics.cfm?tid=521&id=1196582007
2) globally increased demand for wheat for animal food means price rise
http://www.voanews.com/english/archive/2007-10/2007-10-11-voa16.cfm?CFID=164384215&CFTOKEN=10410735
3) various places having severe drought (eg Australia) increases prices also
http://www.smh.com.au/news/drought/australian-drought-drives-up-world-food-prices/2007/11/27/1196036861977.html
4) Conversion of land from producing food to biofuels:
http://www.newscientist.com/article/dn11811-biofuel-production-may-raise-price-of-food--.html
Add in continuing rise in world population, effects of global warming (increase extreme weather patterns, rise in sea levels) etc and peak oil (which will increase the cost of transporting food, packaging etc) and you have the perfect recipe for long-term food price increases.
(I notice the telegraph quotes a price of 33p for a pint of milk - where I live the shop next door charges 60p a pint! (but then I live in a dairy farming area.))
Yeah - I feel like I have less money now than I ever did and I earn over twice what I did when I left university. Mind, most of that is the cost of now living in London and the hugely increased costs of housing.
Supermarket food is a right rip-off. Except when Sainsbury's was doing nice bottles of whisky for a tenner the other week ...
But things like bread, eggs, milk, etc, are loss leaders marked down cheap but designed to get you in the store to buy all the other stuff you don't need. Now that Xmas is coming the stores don't need to try too hard so up go the prices.
Also - has a store nearby closed down? Supermarkets price according to how much competition there is and the demographic profile of local residents.
Yes, there is some bad price inflation on food at the moment. Aside from the reasons Mal outlined above, there's also the rising cost of oil. Basically the price of most of what we eat depends on oil, be it in the form of fertilizers, or transport.
My advice would be to shop somewhere where there's some competition - any town or suburb that only has one supermarket will be a rip off. Use markets if you have them near you. Don't buy too much and avoid processed foods and ready meals.
It's not just here, either. There was a national "boycott pasta" day in ITaly recently over rising prices.
Regards,
Martin








is anyone else having major trouble budgeting at the moment? the prices of basic foods like eggs, bread and butter have gone mental. i bought a bag of flour today for 74p when last week the same flour was 60p. butter that was 52p a few months ago is 90pish now. we're way overspending but we're only buying the same groceries.