Groceries cost 5.8% more than the same time last year

Yesterday I learned through YumSugar that several big label grocery items are shrinking in quantity yet keeping the same price. This information came from a Time magazine article stating that rising commodity and fuel prices are causing manufacters to either raise the price of food or lower the quantities. Harvard Business School Professor John Gourville explains this change to the fact that,”People are just more sensitive to changes in price than changes in quantity. Most people can tell you how much a box of cereal costs, but they have no clue how much is actually in it.”

This month, Kellogg’s started shipping Apple Jacks, Cocoa Krispies, Corn Pops, Froot Loops and Honey Smacks containing an average of 2.4 fewer ounces per box.

The changing product sizes are part of the reason the Bureau of Labor Statistics says groceries cost 5.8% more than the same time last year.

For a girl who loves to eat, this is not happy news :(

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