Over the summer, food and household supply prices are expected to rise as much as 15%. According to the average American household budget from the Bureau of Labor Statistics, the combined expense of food, household operations, and housekeeping supplies was $10,505 in 2019. A 15% jump in that number means the average American household is going to get dinged approximately $1,600 a year, or $130 a month, just buying the same food and household supplies they bought before.
Why is this happening? For the most part, it’s an aftereffect of the pandemic. For the last year, demand for a lot of supplies was relatively low, so prices stayed even and a lot of companies trimmed their supply chains. As the world returns to normal, demand is returning to normal and we’re playing catch up.
How should individual households handle this? As always, the best tool in our financial toolbelt for handling short-term financial change is frugality. In this case, since the price increases are happening with food and household supply prices, targeting frugality to those areas is the most effective tool we have.