Saving money in the south, spending it in the west
The Wells Fargo Consumer Price Index, released Tuesday, showed that overall, nonseasonally adjusted prices fell 2.6 percent in November. The Utah decrease outpaced the national nonseasonally adjusted decline of 1.9 percent and the 1.7 percent decline after seasonal adjustment. The 1.7 percent decrease was the largest amount on record going back 61 years, as energy costs posted nearly double the decline of the previous month.
Transportation costs led the way in Utah, falling 13.4 percent in November, reflective of gasoline prices. Nationally, gasoline prices fell 9.9 percent.
Transportation accounts for 15.7 percent of a typical Utahn’s spending. November was the fourth consecutive month of decreases, and transportation costs are down 11.6 percent during the past nine months.
But local food prices in November did not benefit from the dipping transportation costs, with food-at-home costs rising 2.3 percent. They’re up 12.3 percent over the past nine months, while grocery prices nationwide have jumped 5 percent during that same period.
There’s good news for Alabama consumers, just in time for the Christmas holiday season.
The cost of 20 basket items averaged $52.68 in Dec. That’s down $1.89 or 3.5% from November’s survey.
The Alabama Farmers Federation said Tuesday, beef, pork and eggs prices are down.
Tomatoes were higher, but other produce including lettuce, red potatoes and sweet potatoes are lower. Other seasonal favorites – ham, pecan halves, apples and oranges also fell this month.
A look at regional costs showed the lowest market basket was $51.21 in northwest Alabama. It was highest in south Alabama at $54.16.
Food prices are the lowest since July, due mainly to tumbling gas prices and a weaker economy.
General Mills Inc (GIS.N) posted a higher-than-expected quarterly profit and raised its full-year forecast on Wednesday, helped by cost cuts and investments in marketing and new products.
The maker of Progresso Soup and Cheerios cereal has benefited along with other food companies as consumers buy more soup, cake mixes and yogurt to save money by eating at home more often. Shares in the company rose nearly 3 percent before the market opened.
But General Mills also said that a stronger dollar would cut into sales and earnings for the year.
More Utahans are giving grocery gift cards this year instead of more traditional Christmas presents.
Inside the Provo Macey’s grocery store, Director Steve Bitter says the store’s grocery gift cards are a hot item this year. He says businesses are snatching up the most cards, likely as gifts to employees.
“They’re probably giving them food gift certificates and stuff like that to help out during Christmas,” he said.
Throughout the company, grocery gift card sales are up 18 percent. “Rather than giving them watches or movie tickets or something like that,” Bitter said.
Other Utah grocery stores like Smith’s, Harmons and Albertsons also reported higher gift card sales. Bitter says it’s likely this Christmas is more about giving the essentials.
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