Yahoo Finance 7 Grocery Items To Avoid While on a Retirement Budget
One thing seniors learn how to do early in retirement is life on a budget, mainly because they have no other choice. Retirement often means getting by on a fixed income, without the possibility of work bonuses, raises or better-paying jobs to provide a financial boost. This requires knowing not only what to spend your money on every month but also what not to spend your money on.
The past few years have not been kind to retirees and other consumers. The U.S. inflation rate reached its highest point in more than four decades — and groceries were among the items with the biggest price hikes. Although inflation has eased over the last year or so, it’s still above the Federal Reserve’s target rate.
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Average annual food-at-home prices were 5% higher in 2023 than in 2022, according to the latest data from the U.S. Department of Agriculture’s Economic Research Service. For context, the 20-year historical level of retail food price inflation is 2.5% per year.
Prices for fats and oils rose the fastest in 2023 at 9%, followed by sugar and sweets (8.7%) and cereals and bakery products (8.4%). Pork was the only category to decline in price in 2023, dropping 1.2% year-over-year. Prices for several categories grew more slowly than their historical averages, including beef and veal (3.6%), eggs (1.4%), fresh vegetables (0.9%), fresh fruits (0.7%) and fish/seafood (0.3%).
Let’s dig into how inflation is impacting average retirees at the grocery store:
Grocery Inflation Slows in 2024, But Is It Enough?
Grocery price inflation will continue to slow in 2024. In February, prices for most food-at-home categories were flat on a month-to-month basis, according to consumer price index data from the U.S. Bureau of Labor Statistics. However, some categories continue to rise year-over-year.
“As we look at prices for early 2024, there is welcome news for consumers as February CPI data suggests a continued easing of inflation,” Andy Harig of The Food Marketing Institute told Supermarket News. “On a year-over-year basis, inflation for food at home was 1%, a strong figure that should encourage consumers.”
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When it comes to budgeting for groceries, one of the best moves you can make is to strategize over what to buy — and when. As Reader’s Digest noted, you can save money when you buy certain items in season. For example, here are the best times to buy certain fresh fruits:
Spring: kiwi, pineapples, strawberries.
Summer: blackberries, blueberries, cantaloupe, cherries, honeydew melon, peaches, plums, raspberries, strawberries, watermelon.
Fall: apples, cranberries, grapes, pears, raspberries.
Winter: grapefruit, kiwi, oranges.
These are the best times to buy fresh vegetables:
Spring: asparagus, lettuce, mushrooms, peas, spinach.
Summer: beets, bell peppers, corn, cucumbers, eggplant, green beans, summer squash, tomatoes, zucchini.
Fall: Brussels sprouts, cauliflower, parsnips, sweet potatoes/yams, turnips.
Winter: kale, leeks, rutabagas, sweet potatoes and yams, swiss chard, turnips, winter squash.
Because fresh fruits and vegetables are so important to a healthy diet, you don’t want to avoid buying them, even on a retirement budget. However, you might want to avoid buying right now due to price trends.
Here’s a look at seven grocery items to avoid on a retirement budget, based on the most recent price increases cited by the BLS:
Beef Roasts
Price gain in February 2024 (year-over-year): 9.2%
Beef Steaks
Price gain in February 2024: 8.1%
Beef and Veal
Price gain in February 2024: 7.4%
Ground Beef
Price gain in February 2024: 5.9%
Crackers, Bread, and Cracker Products
Price gain in February 2024: 4.9%
Frozen and Refrigerated Bakery Products, Pies, Tarts, and Turnovers
Price gain in February 2024: 3.8%
Nonalcoholic Beverages
Price gain in February 2024: 2.3%
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This article originally appeared on GOBankingRates.com: 7 Grocery Items To Avoid While on a Retirement Budget
