Are food prices set to rise? #thrifty
The economy is still recovering from the Brexit vote, but the pound is still down. There is still a glut of oil worldwide and so we can expect rising food prices just like in 2008 but at least this time petrol prices shouldn’t go up too much. It’s not only imported food that could rise in price but home produced food too as farmers face rising costs. The rising prices could be offset by the supermarket price war, but they won’t be cutting prices across the board.
The lower value pound will also mean higher prices for clothing and other goods but these are competitive markets and so we won’t notice too much of a difference. Price rises aren’t applied evenly and basic clothing like plain tee shirts will probably stay the same price while more expensive clothing and designer clothing will see a price rise.
The discounters, Aldi and Lidl are struggling to compete on choice and many shoppers are returning to the bigger supermarkets. Many shoppers, like me, shop one week in the discounter and the next in one of the big four supermarkets. Stocking up on frozen food from the discount supermarket can save a few pounds if you have a big freezer. Stocking up the food cupboard too, with things like canned food, salt, vinegar and tea will also save a few pounds. Shopping in the bigger supermarket we can then concentrate on fresh foods, where the big four are trying to compete on price.
Gas and electricity
As gas and electricity contracts come to an end it is worth comparing tariffs and trying to save money. Fixed tariffs are likely to be better with the prospect of prices rising, much of our gas is imported. The same applies to communications although that market isn’t quite so competitive. We do have the likes of GiffGaff offering an alternative to the bigger companies in the mobile market.
The special buys at Aldi today are quite good. The rounders set for kids is quite good value. That will keep them amused and is a healthy pursuit too.
People spend a smaller chunk of their income on food these days and rising food prices won’t affect the elderly as much as families with children. Some economists are predicting that the cost of housing could fall, but economists haven’t got very much right since 2008.