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Americans are shopping for cheaper groceries amid rising prices

24.01.2022

American consumers are filling their shopping carts with cheaper groceries because of rising food prices.

Shoppers are shopping for more discounts and are switching to cheaper store brands for cooking oil, frozen food and items in other grocery sections, according to supermarket executives. People are comparing prices at various stores and signing up for savings programs such as automatic delivery that give additional discounts in order to stretch their dollars.

The move marks a shift in consumer behavior after shoppers splurged on food earlier in the pandemic. Food companies say that unemployment benefits and federal stimulus checks left people with extra cash and consumers spent more on groceries as they cut back on dining out and travel in 2020. Inflation reaches its highest rate in four decades, shoppers have started looking for ways to lower their food bills, industry executives and analysts said.

Natalie Existe, a health counselor in New Jersey, said she is getting creative with the goal of saving money. She said she is shopping in bulk, shopping for groceries in bulk, and comparing prices of several retailers online before going shopping in person.

Ms. Existe said she has been checking weekly circulars for bargains and cutting spending on hair and nail appointments, as overall prices of goods increase. She said she has noticed higher prices for meat, vegetables and beverages, such as orange juice and cranberry juice, and now spends about $200 a trip on groceries for herself and her 12 year-old son, compared to $125 to $150 months ago.

The consumer-price index, which tracks consumer goods and services costs, climbed 7% in December from the same month in 2020, the fastest pace since 1982. The food-at-home index increased by 6.5% in 2021, the largest over-the- year increase since 2008. The index for meats, poultry, fish and eggs went up 12.5% from 2020 to 2021, while fruits, vegetables, cereal and bakery products were more expensive.