WEST MICHIGAN - Sticker shock! It’s happening in grocery store across the country as prices are on the rise.
Economics professor at Grand Valley State University Paul Isley says supply chain disruption is a big reason why food prices are up, and he says that heading into the second half of this year, with an expected 5 to 8 percent growth, the economy will continue to heat up which means prices will continue to go up and up.
“We’re starting to see different prices increase and we certainly expect prices this year to increase faster than they have in previous years," says Professor Isely. “Think about this, we get a lot of fruits and vegetables and things like that from Brazil, think about the COVID problem they’re having in Brazil right now. And they’re ability to transport those good to us is restricted because of that. So our ability to access the agricultural good we’re used to accessing from all around the world has dropped.”
And that’s increasing our prices.
But the good news is there are ways to help you stay on budget – and that’s whether you buy your groceries in a store, or online.
Check out cash back app Ibotta, it lets you save money wherever you like to shop, and pays you for your grocery purchases.
Another helpful app is Basket, it lets you fill it up with all the groceries you plan to buy, and it will find the store nearest you where you can get everything you need at the lowest price.
Professor Isley says consumers should do the following as we head into the second half of 2021:
- Pay attention to price increases disguised as quantity decreases. Watch per unit prices.
- Think about substituting between types of goods, because not all prices are going to up.
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