Groceries feel pricey, and there’s a lot of nuance from farm gate to your basket. Start at the farm. Seeds, fertilizer, feed, and diesel all cost more than before. When gas prices rise, tractors and irrigation cost more. If drought or floods hit, harvests shrink, supply falls, and prices jump.
Next comes processing. A tomato becomes sauce after washing, cooking, and safety checks. Factories pay for energy, staff, and strict standards. When electricity spikes, your jar of sauce gets pricier.
Packaging isn’t cheap. Cans, glass, labels, and cardboard need raw materials and fuel. A heavier bottle costs more to ship. If metal or paper prices rise, you feel it at checkout.
Transport adds layers. Food moves by truck, rail, and ship. Drivers’ wages, tolls, and diesel add cents to every item. One storm, strike, or blocked port can push costs up overnight.
Stores have high bills too. Rent, refrigeration, wages, and insurance all add up. Keeping milk cold 24/7 burns power. Shops also lose some food to waste and theft, so prices cover that.
Exchange rates matter. If coffee is bought in dollars, a weak local currency makes beans costlier. Contracts and delays mean increases arrive late, then stick around.
Why sales and shrinkflation? Promotions clear stock and keep you loyal. Smaller packs hide input spikes without raising the sticker price.
What can you do? Plan meals, compare unit prices, buy seasonal produce, freeze extras, try store brands, and shop local when you can. Small habits save big over time.