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WE ALL HAVE OUR OWN indicators for where the cost of living is headed. These are the kinds of things that hit us viscerally. Last weekend, we had family visiting, and we decided to order pizza and wings. Two large pizzas, two dozen wings and an order of chicken tenders for our grandsons cost $103. A large pepperoni pizza alone was $26.
On Sunday morning, my wife and I took our two older grandsons out to breakfast. Two short stacks of buttermilk pancakes with bacon, an acai bowl, and one order of bacon, eggs and toast came to $74. Two coffees and two orange juices were almost $20 of the bill.
Neither of these meals included cocktails, beer or wine. Alcohol prices seem to be particularly high at restaurants in a resort town like ours. I’m a wine fan and enjoy looking for great bottles at bargain prices. It’s common to see wines priced at three times the retail price.
A recent article in USA Today supports my sense that food prices have climbed sharply. The article quoted recent data from the Bureau of Labor Statistics. Food prices overall are up 4.6% since September 2020. But meats, poultry, fish and eggs have jumped 10.5%. Compare this to the change in the Consumer Price Index (CPI), which measures the average change in the price of goods and services. CPI has increased 5.4% since September 2020.
Several years ago, I did a thorough review of our spending. We were using a rewards credit card for as much of our spending as possible, making sure to pay it off in full each month. This gave us a good database to gauge how much we were spending on things like groceries, dining out, gifts, gas and so on. I used the data to project our retirement budget.
How does our spending today compare to those estimates? I took a quick look at 2021’s spending, and I’m pretty sure we’ll exceed the “dining out” budget. Food inflation is part of the reason, but lately we’ve also been eating out more than we expected. Living in a beach town, with lots of transient and part-time residents, can make every day seem a bit like “vacation.” And when friends and family visit, they are indeed on vacation, and their desire to go out is greater.
I’m not worried about the cost, but it’s something to keep an eye on. In addition to being expensive, dining out isn’t always the healthiest choice. Inviting friends and family to dinner at our home is just as much fun, even if we’re ordering in expensive pizza. And it gives me a chance to share one of my bargain wine discoveries.
I just have a question about the numbers….at the BLS I found the CPI index for 9/2020 to be 260.280, and the latest index from July this year 322.561. This represents an increase in the index by around 24%……Perhaps you are thinking of average inflation??
I am currently in Greece and I’m shocked at the increase in the price of fruit. From watermelons to figs everything is up at least 25% from last year. There are farmers’s markets and prices are a bit lower than supermarkets but still much higher than last year. Still I think most fruits and vegetables here in Greece cost half as much as the U.S.
Recently digging up a reusable bag for groceries under the back seat of my vehicle. Found an old receipt at the bottom of the bag from almost 2 years ago. Compared the prices – shocked to find some items have increased only 10 or 12 % – others have skyrocketed
We had a pizza party with my niece and her family when they were up earlier in the summer for a visit, 11 people total. I bought four large pizzas (1-2 toppings) and one medium from our favorite pizza place for around $90, before the tip. No coupons or specials. Money well spent.
My weakness is chocolate and my favourite bar has increased in price by 69% over the last year. Very sad.
I don’t have the data at hand but recall small business labor costs rising quite a lot since 2020. Those would pass right through to restaurant prices.
That pizza order sounds high, by me 2 large pies and 24 wings is usually a special, around $50. I’m suburban NYC so not a low cost of living area but perhaps competition keeps the prices lower?
That’s a pretty good deal. The price I quoted was in a south Jersey beach town, and at a very popular but pricey boardwalk pizza joint. We are now in Monmouth county and we can find some good deals on pizza. There are still some pricey ones around.
Rick, I’ve bemoaned the loss of Little Caesar’s PizzaPizza marketing from the 80s; two medium one topping pizzas for 5 bucks.
Now looking back to 2021, I have noticed that although supply chain issues and gas prices have resolved and receded, many retail prices remain high.
I’m curious if in the ensuing 4 years since writing this article, do your spreadsheets confirm my observation regarding stubbornly high prices?
Dan, I agree prices have not receded since the inflation spike. I think that’s the most confusing part of understanding inflation, even thought it comes down prices don’t come back down to the pre-inflationary level. Since 2021 we moved from the beach town, so we can find some better deals on pizza. There is an Italian themed local grocery chain near us that has good basic pizza. On Wednesdays and Fridays they have 2 16 inch pies for $22. People line up for them,
We just went to the local VFW post for breakfast with friends. It’s a basic buffet – pancakes, eggs, bacon – for $15 per person. I think that was below $10 5 years ago. But it’s don’t mind contributing to the Vets.
I think Domino’s sells them for about 5-6 bucks a piece now.
And that $103 pizza bill would have been 15%-20% higher if you ate at the restaurant and left a tip….
The $103 did not include the generous tip we gave the delivery person.