Going to the grocery store is only going to get more expensive.
Food prices rose 1% while food at home jumped 1.4%, the fastest monthly gains since April 2020, according to the latest Consumer Price Index figures. And food price inflation likely will only intensify in the months ahead.
In 2022, “all food prices are now predicted to increase between 4.5% and 5.5%,” according the U.S. Department of Agriculture’s Food Price Outlook.
Food-at-home prices are expected to rise between 3% and 4%, and food-away-from-home are predicted to increase between 5.5% and 6.5%, the USDA said in its March report.
Russia’s invasion of Ukraine is putting upward pressure on food prices, even as the Federal Reserve attempts to combat inflation by raising interest rates, the report said. “The situations will be closely monitored to assess the net impacts of these concurrent events on food prices as they unfold.”
The forecast for nearly all food categories, with the exception of fresh vegetables, was revised upward.
However, it’s not just staples such as fruit, milk, eggs and meat that are getting more expensive; inflation has led many food and beverage companies to raise prices on your favorite packaged goods, as well (or make the package smaller, also known as “shrinkflation”).
Tyson Foods, Coca-Cola and PepsiCo announced price increases, citing supply chain and labor problems. Even Oreo cookies, Ritz crackers and Sour Patch Kids candies cost more — thanks to a 7% price hike at the beginning of the year.
To avoid getting gouged on groceries, here are a few pro tips to either cut costs or get more cash back:
1. Use a cash-back app
Ibotta and Checkout 51 are two of the most popular apps for earning cash back at the store, according to Julie Ramhold, a consumer analyst at DealNews.com. The average Ibotta user earns between $10 and $20 a month, but more active users can make as much as $100 to $300 a month, a spokesperson told CNBC.
You can also earn cash back for online grocery orders with CouponCabin.com (there’s a free app, as well as the browser extension), which is offering up to $6 back at Instacart, 2% back at Vons, 1% back at Kroger and 5% back at Seamless, advises consumer savings expert Andrea Woroch.
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If you’ve already done your shopping, snap pictures of your grocery receipts using an app such as Fetch Rewards to earn points that are good toward free gift cards at stores such as Target or Walmart and can offset future grocery purchases, Woroch suggested.
2. Plan your meals
This tried-and-true technique helps edit down your shopping list to weekly essentials and save a lot of money along the way.
When you plan your meals in advance, you’re more likely to just buy the things you need, said savings expert Lisa Thompson at Coupons.com. If planning’s not your thing, at least go shopping with a rough idea of what you’ll be cooking in the week ahead to help stay on track and avoid impulse purchases, she added.
Give your budget an extra boost by planning around whatever is the weekly special, Ramhold at DealNews.com advised. “Doing so will help you save money and may even help to broaden your recipe repertoire and get you out of a meal rut.”
3. Buy store brands
Generic brands are usually much cheaper than their “premium” counterparts and just as good, according to Ramhold. “If you don’t have a preference, it’ll be an easy switch, but if you do, consider trying a few generics at a time to see if there are any you won’t mind switching to.”
Be open to trying new products, even if it means a break from your favorite laundry detergent or coffee creamer, Thompson added.
“Maybe you’ll discover some new products you love that cost less in the process.”
4. Shop strategically
A consumer shops in a Costco store in Miami on Sept. 28, 2021.
Joe Raedle | Getty Images
When it comes to the rest of the items on your list, you can save more by buying in bulk or choosing, for example, some frozen vegetables over fresh or nonorganic where you can. Joining a wholesale club such as Costco or BJ’s will often get you the best price per unit on those items you can stockpile.
Then, keep your pantry organized, with food closer to expiration in front so you know to cook or consume them before they go bad, said Woroch.
You can even use a site such as Cooklist.com to find new recipes using ingredients you already have at home, she said.