Lately I've noticed cheap foods that I typically buy are rising in price. For example, although it's small- Ramen prices at my local Wal-mart went from 18 cents, to 19, to 20 cents within a month's time. On the same note, the price of a can of Arizona Green Tea has gone from 79 cents, to 89, to 99 cents within a few months time. I realize it's fickle to point out the rise of a few cents in already dirt-cheap items, but it's come to my attention and I'm curious if this trend is happening elsewhere as well. As someone who has to pinch pennies despite having a full time job, I'm displeased with the price rise. Gas prices and other items are on a completely different scale and have other points that need to be considered that explain their cost rise and fall, but why the tiny things?
Sadly -- most of it goes back to gas prices. Even items that we love that are relatively inexpensive to make --like the Arizona tea -- they all have to be shipped. So when gas prices rise, the company is still responsible for making sure that those products get to their contracted locations on time -- and that gas cost comes out of their pocket. SO while, it seems greedy of them to do it. They raise their prices so that they can cover expenses like shipping without taking away from their bottom line. Sad but true.
Cost of labor and service, are two main factors that determine the price of any product. Demand is merely a starting and enduring value of a product, but labor and service are the extra effects that allow immediate, daily, weekly, monthly, and seasonal changes in prices. A third important factor I consider for a rise in food prices is the fact that its fall season and soon to be winter in this region of the world, which will make it harder for people to transport goods, locally to internationally. A small rise is okay and I understand people need to be compensated, but if was like half a dollar or more in price rise in a day, then that's when trouble is on the way!
Unfortunately this does seem to be the case . I've noticed it too and don't typically talk about it much because a lot of people don't seem to understand the big deal about "a few pennies" but you know, all those pennies add up.
Just brew your own tea, you will save a ton vs. buying in the stores already brewed and bottled, plus it will taste fresher, you can control the strength, and you don't have to lug all those bottles and gallon jugs of it home from the grocery store. One box of family size tea bags typically costs around $1.50 at Wal-Mart and makes 6 gallons of tea. If you were to buy the tea already brewed, which is usually around $4 a gallon, that would have cost you $24 vs. $1.50. The savings is pretty tremendous. But yes I have noticed prices going up on a lot of stuff - I'm wondering if some of it has to do with seasonality and perhaps it will drop back down in the coming months. Even things such as fresh Parsley and Cilantro which are normally 75 cents a bundle are now selling for $1.30 a bundle at our local discount store.
I noticed that too. I rarely buy candy, but I happened to notice that regular sized candy bars were now $1.09. I was like, "When did that happen" I thought they were like $0.79 not long ago and it was just the king size ones that were over $1. It's amazing how fast prices go up. I am at the point where I can't afford to buy pricey foods or really anything I don't absolutely need. If things keep going up at this rate, I will be in this position for a very, very long time.
There's no clear cut answer to your query. Maybe the economists can enlighten you and provide you with the answers you're seeking. My own take on the matter is in the economic context but it's nowhere near an expert's point of view. Prices rice when there's less supply and more demand and it's usually got something to do with the ingredients used to make that product. It'll create a chain reaction, making the product that uses that ingredient increase in price as well.
While the price of produce and meat is on the rise, you'll be able to go a lot further with them as your main purchases over ramen noodles. Even with it being a few cents, you are still losing out in the long run because of the fact that you are simply eating more food to compensate for the lack of satiety.
