Wallet Watch newsletter: Grocery prices are (kind of?) down
The Consumer Price Index shows food prices are up more than 31% since January 2020. Source: U.S. Bureau of Labor Statistics
What’s given you sticker shock in the grocery aisle these days? Email walletwatch@newsday.com and let us know.
A few months ago, it might have been tomatoes — among the latest casualties in America’s affordability crisis, with prices up 40% from the year before. Tragic news for Mom’s Sunday sauce.
But these days, there’s some hope for the harried food shopper as major retailers slash prices in an effort to draw consumers away from deep-discount stores like Aldi. Last month, Costco joined other grocer giants like Stop & Shop and Kroger in cutting prices, Tory N. Parrish reported for Wallet Watch. And, earlier this week, Walmart and Sam’s Club executives said they would lower prices on beef, corn and other grilling essentials to reduce the cost burden on families for summer staples in temporary rollbacks, Victor Ocasio reported.
Justine Kinsky, 35, of Floral Park, said price cuts at Stop & Shop would likely inspire her to buy more products there. Credit: Debbie Egan-Chin
Inflation has slowed since its peak during pandemic, but prices are still going up and are unlikely to go back down. On Long Island, the consumer price index in May was up 5.1% compared to last year. Entering July, consumer confidence remained historically low, although attitudes towards the economy improved slightly with a dip in gas prices.
Grocers might be cutting prices, but who knows if it's enough to offset the increases we've seen so far from inflation?
Like the rest of you, I’m watching grocery prices with bated breath.
From our readers
Christina Ann on Facebook asks:
Why is the cost of living so high — mortgage, food, gas, rentals?
My colleagues James T. Madore, Jonathan LaMantia and Tory N. Parrish answered this with the first article to come out of Wallet Watch. For many on Long Island, the affordability strain comes from everything all at once, with a cost of living that outpaces the national average by 32%.
Experts say the high prices on Long Island come from its attractiveness as the suburbs outside of New York City, many layers of government and high demand from a large population for a limited supply of commodities. The housing market on Long Island is brutal, with prices rising faster than income and low supply due to limited space, red tape, pricey supplies and local opposition to new development.
The island's many layers of bureaucracy also fuel some of the highest property taxes in the country, and high demand and grid constraints lead to electricity costs slightly higher than the average in a state that ranks No. 7 in residential electric rates.
Cars and auto insurance also cost more than many other parts of the country, and families face childcare expenses that can rival the cost of college tuition.
You can read more about why Long Island is so expensive here. And stay tuned for an upcoming Wallet Watch article about why property taxes on Long Island are so astronomically expensive.
Have a question you'd like to submit? Confused by a bill? Spotted a price hike? Ask our team and we might answer it in the next edition. Email walletwatch@newsday.com or click here.
Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.
