Comparing Grocery Prices From Five Years Ago - KCBD NewsChannel 11 Lubbock

6/11/08

Comparing Grocery Prices From Five Years Ago

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"This morning I came to buy some apples and they were four for $2 and I was like, wow," said one grocery shopper. 

Most consumers would react the same way, so NewsChannel 11 wanted to know just how much food prices have increased. After digging up a receipt from five years ago we went shopping.

Of the 13 items we bought overall there was a 28% inflation increase. A gallon of milk, five years ago costs $2.49, and today you would be paying $3.89, a 56% increase in inflation. Butter spray that was bought five years ago costs $1.59, when today we paid $2.29, a 44% inflation increase. Five years ago an ear of corn costs $0.20, but today we paid $0.40, a 100% inflation increase. One expert thinks he knows the answer why.    

"I think there's a good reason for that and that is the government's policy of ethanol promotion and that has then encouraged the use of corn for fuel production, so now we new demand that we didn't have before," said Texas Tech Professor of Finance Scott Hein.         

Hein says groceries have gone up 5% each year over the past five years, so by our results $100 worth of groceries in 2003 would cost you almost $130 today.

"Everything is just going high gas, food, bills and the pay is the same," said a grocery shopper. 

Although we've seen a recent spike in inflation, Hein says it's nothing like the inflation period of the early 80's. He adds to find out what's driving the current increase you have to look at the Federal Reserve.

"They have been worried too much about the economy slowing and have been too easy and with that people are aware of all the buy with goods and services and that drives up prices, and while I hate to pay $4 a gallon for gasoline today, I'm happy actually that I can get gas and don't have to wait in line for it. So it could be much worse and has been much worse in our history," said Hein.

2003

2008

Difference

Percentage

Blueberry Cake Donuts

$2.99

$3.49

$0.50

16.72%

Red River Milk

$2.49

$3.89

$1.40

56.22%

I Can't Believe It's Not Butter Spray

$1.59

$2.29

$0.70

44.03%

Blue Bell Ice Cream

$4.39

$4.99

$0.60

13.67%

Kids Cuisine

$1.79

$2.00

$0.21

11.73%

Santa Fe Tortilla Chips

$2.99

$3.59

$0.60

20.07%

Cocoa Pebbles

$2.99

$3.29

$0.30

10.03%

Rainbo Bread

$2.19

$2.79

$0.60

27.40%

Smuckers Preserves

$2.99

$3.19

$0.20

6.69%

Jif Peanut Butter

$1.99

$2.09

$0.10

5.03%

Bisquick

$0.99

$1.49

$0.50

50.51%

Kraft Cheese

$4.79

$5.39

$0.60

12.53%

Corn on the Cob

$0.20

$0.40

$0.20

100%

TOTALS

$32.38

$38.89

$6.51

28.82%

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