Thu 9 Apr 2009
Posted by RichSlick under Basket of Goods
Comments Off on Have You Noticed The Price Deflation Everywhere?
If you haven’t noticed, almost every fast food restaurant has a new “value priced” menu which is significantly lower than previous menus. Quiznos now has the $4 Torpedo sandwich; KFC has a new dollar menu; Popeye’s has a $1.99 special; Subway now has $1 sides with the purchase of a sub; Domino’s now has $5 sandwiches and pizza.
The two items at the grocery store I’ve seen significantly drop in price are breakfast cereal and beef. I now regularly buy breakfast cereal for about $1.20 per box where a couple of years ago, cereal was costing me $4+ for a similar box.
So here’s what my recent purchases of my “basket of goods” shows for April 2009.
Basket of Goods April 2009
|Item||Sep 07||Apr 08||Jan 09||Apr 09||%Change|
|1 Dozen Eggs||$2.09||$2.39||$2.39||$2.39||0%|
|1 Gal Org. Milk||$5.99||$5.99||$5.99||$5.99||0%|
|16 / 14.5 oz Box Cereal||$2.39||$2.47||$1.98||$1.82||-8.1%|
|1 Loaf Bread||$2.19||$2.48||$2.44||$2.44||0%|
|12 oz Bacon||$2.68||$1.88||$1.49||$1.49||0%|
|Rib Eye Steak||$7.87/lb||$8.48/lb||$8.49/lb||$8.79*/lb||3.5%|
|2.5 Gal Water||$2.69||$2.69||$2.50||$2.69||7.6%|
It is becoming difficult to compare “apples to apples” because the prices of food are all over the board. For example, the boneless ribeye steaks are $8.79/lb but the bone-in ribeye is $3.50/lb which is a huge difference. In this particular instance, I purchased the bone-in ribeye which makes perfect sense. The grocery store also offers in-house coupons for many items, the Honey Bunches of Oats cereal was priced at $2.32 for 14.5 oz box but came with a $0.50 off coupon meaning the true cost was $1.82.
I did find loaves of bread from as low as $0.88/loaf but I try to keep as consistent as I can with the pricing on the basket of goods so I purchased the same loaf I normally do for $2.44. Overall, if I practiced “
Other items that I don’t track have dropped dramatically in price such as lobster, shrimp, fish, beef (non-ribeye), chicken, and many other staples so there is no question in my mind that we are in a deflationary period, I suspect that by next quarter if things haven’t improved, the prices for the same brand items that I buy will drop.