Did you know that when the government calculates the rate of inflation commodities like food and gasoline aren’t included? According to this site inflation rates for 2011 were 3%. My food and gasoline went up a lot higher than that.
Take the lowly graham cracker for example. When I first wrote the Grocery Shrink ebook, I was able to buy a 16 oz box at Aldi for $.99 ($.06 per oz). Now the box only holds 14.4 oz and costs $1.49 ($.10 per oz). The price of graham crackers has gone up 60% since then. Thankfully graham crackers aren’t essential and I can choose to not buy them…but nearly all foods have risen in price in a similar fashion. By shopping the Grocery Shrink way–we don’t feel these prices as keenly as someone else might, but I’m starting to feel it more and more. Sale prices are still dropping, but store limits (you can only buy 2 at that price) are squeezing my ability to maximize the dollar like I used to.
I’m still working with a $50 per person per month food budget. Since I have a large family that gives me $400 to play with for the month. Sticking to that budget is getting a lot harder to do. And I’ve been thinking about it…a lot. Some of my children are very young. While my 6 year old out eats me on a regular basis my 4 year old and 9 month old don’t.
I think some new budget recommendation are in order, at least until food prices come back in line with inflation. And yes, they can. Food prices fluctuate madly while inflation prices rise more steadily. So until further notice, my budget recommendations are:
$100 per male adult (or child age 12 and over) per month
$75 per female adult (or child age 12 and over) per month
$50 per child (age 11 to age 2) per month
$30 per child (age conception to 2) per month (Even if a child is still in the womb or breastfeeding, mom needs to up her nutrition during this time–and may need to take advantage of more convenience items.)
For my family, our new grocery budget would be $480/month. We can’t afford that right now, so I’m still going with my $400 budget, but as soon as our circumstances change, I’ll be asking for that raise :). If you can afford to take your raise now….go for it!