Ever wonder how far your money goes at the grocery store today compared to decades past?
When you adjust food prices for inflation, you might be surprised to learn that your dollars go further today compared to 30 years ago -- for most products at least. Don't believe it? See for yourself with this grocery shopping simulator that reveals how much your grocery bill varies over the past three decades.
How it works
You start with $35.46. That's the average weekly grocery budget for an individual on a thrifty plan for a nutritious diet, according to Census data. Of course, $35.46 in 2012 is not worth the same as in the past thanks to inflation. In 2002, that amount (adjusted for inflation) is the equivalent of $27.57. In 1992, it's $21.50. And in 1982, it's $14.79.
Could you live on $438 per month? That's the poverty threshold for a family of four in 2011, according to Census data. See if you can get by supporting a family of four on just $22,811 a year with the Marketplace Poverty Simulator. Give it a try.
What impacts food prices?
The story of food prices is mostly one of supply and demand. On the supply side, when the weather is bad, it can hurt farmers growing crops like grains. Thing is, grains don’t just factor into bread prices. Let's say wheat supply slows -- that means more expensive feed for farmers. When it costs more to keep cows and pigs and chickens fed -- it’ll cost more when you buy a whole chicken or ground chuck at the grocery store.
Demand is up, too. The United Nations tells us there are 7 billion people on the planet. In 30 to 35 years there’s going to be more than 9 billion -- and that’s a whole lot of mouths to feed.
Fifty years ago, people were eating a lot less on average, especially meat. But as more people reach the middle class, they eat a more protein-rich diet. That meat protein requires greater grain units. As world trade expands, the price of meats and grains both rise.
Other variables -- like the economy and speculation -- all affect food prices as well.