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Food costs are putting the crunch on shopper's budgets

(Audacy News / WCCO News)

Audacy News: Food costs putting the crunch on shopper's budgets

You may have noticed already, but as groceries rise to historically high prices, shoppers are feeling the crunch.


Some stores are much more expensive than others, but sometimes consumers don't really have a choice as to where they shop.

"I don't really have the ability to travel too far, so it's not like I can just pick and choose what grocery store I go to," said one shopper WCCO spoke to on Tuesday.

"Aldi is a good option. It's nearby, but I couldn't have gone to the Wedge (Co-Op) today, that's for sure. Or Kowalski's," says another.

Many have had to make modifications to their routine.

"I have a tier system," one shopper explained. "Go to Costco first. Anything I can't get at Costco, I try and get at Aldi, and then anything I can't get there, I'll just pick whatever's the most convenient, be it Cub, Lunds and Byerly's, Kowalski's."

"I was trying to be conscious of not spending a lot of money today, so I had $11 in cash, $18 in my checking, so I had to make do," another woman added.

According to data from the Bureau of Labor Statistics, groceries have risen 2.2% to 2.7% over the last year. But those numbers are likely to rise, now that diesel costs have reached record levels across the U.S.

Minnesota Grocers Association President Patrick Garofalo said that surging operational expenses and record diesel is weighing on local supply networks. He says these extra expenses will inevitably lead to one thing.

"Whether it's higher diesel prices, higher property taxes, higher labor mandates from government, it's important that people realize grocery stores don't pay these costs," Garofalo adds. "They get passed on to consumers like any other input cost."

And that means shoppers are cutting back on certain items, and are definitely eating at home more than going out.

They're also making unprecedented decisions when it comes to budgeting for food as opposed to entertainment.

"I'm not going to spend $40 on a couple of movie tickets or a couple of tickets to a game or something like that," Alexander told WCCO while out grocery shopping. "I don't want to run up any more money on my credit card. So, you know, yeah. I'm just trying to be responsible and I just spend most of my money on food. It sucks."

Depending on the chain, consumers are spending double the amount at higher end grocery stores compared to more affordable ones.