Different baskets? February 12, 2013Posted by WorldbyStorm in Economy.
Seeing as we’re discussing food, what to make of this? The Irish Times notes that:
Politicians have repeatedly claimed that falling grocery prices have helped offset higher taxes and falling wages, but a new survey suggests the opposite has happened.
And it continues:
The price of a typical basket of groceries, made up of staples including bread, milk, sugar and tea, has increased by more than 12 per cent in less than two years, with some products increasing in price by almost 40 per cent, the Consumer Association of Ireland survey shows. The association has regularly tracked prices of a set list of commonly bought groceries for more than a decade and has found that 16 of 19 products it priced last month had risen in price by between 5.5 per cent and 38 per cent in 20
Of course this is a limited sampling – both the CPI and the HICP have a vastly more varied scope (perhaps too much so, given that the CPI includes building materials, mortgage interest, etc), but it is one of grocery prices including staples and in that sense it gives an insight into day to day or week to week costs.
According to a report last month in the Irish Times the CPI suggested that:
The price level in 2012 remained below 2008 levels owing to sharp falls in prices during the worst of the recession.
This is the first time since the mid-1930s that prices have not risen over a four-year period.
Comparing the full year with 2011, consumer prices rose by 1.7 per cent. This was lower than the full-year change between 2010 and 2011, which stood at 2.6 per cent.
On an anecdotal level, and admittedly purely subjectively, I’d think that the cost of the weekly shopping bill for me has increased by perhaps ten per can or so across the last year and a half. I’d suspect that is actually greater in the smaller mini-supermarkets, like Centra etc. What do others think?