East Lansing residents and students may have to become more cost-conscious consumers, as prices for food and gasoline throughout the nation are increasing by significant amounts.
During the month of June, consumer prices across the United States increased by 1.1 percent, the second fastest increase in 26 years, according to the Department of Labor. The fastest increase occurred in September 2005, following Hurricane Katrina.
Two-thirds of the current increase has been attributed to rising energy prices, which were up by 6.6 percent for June.
“People are (being) forced to spend on higher gas and food prices,” said Tom Scott, senior vice president of the Michigan Retailers Association.
“Gas prices spiking … has had a large effect on retailers — every dollar that a consumer spends at the gas pump is a dollar they can’t spend at a retail store.”
Though inflation has been increasing for a while, the big jump in gasoline prices is what has been causing many consumers to attempt to spend less, Scott said.
“There was something about the gas when it hit $4 that sort of hit at a psychological level,” he said. “I think that really got people.”
Despite the gas increase, the most noticeable change has been in grocery shopping, said accounting senior Eric Aytes.
“I feel like I’m not getting as much for what I pay as (I got) in the past,” he said.
“Also, I noticed a soft taco at Taco Bell went up 10 cents recently.”
With regards to gas, Aytes said he just has to drive less, and walk more, to save money.
Wholesale prices increased by 1.8 percent during the month of June, according to the Department of Labor.
This places retailers in a tough situation, with less consumers being willing to spend while experiencing increasing costs, Scott said.
Don Andrews, assistant manager of Gordon Food Services Marketplace, 5912 W. Saginaw Highway in Lansing, said that his store has definitely noticed the increase in prices.
“(It shows) when we hear a customer say ‘Hey, I bought this a while back and it was at (a cheaper) price, boy it’s gone up,’” he said. “It may have only gone up 50 cents, but they remember what they bought it for.”
The number of customers hasn’t decreased, though, Andrews said.
“People need to eat,” he said. “We see a majority of our customers continue to shop here, (but) maybe (they’ll) buy one less item.”
Advertising senior Griffin Cummings said that he has noticed the price increase a little, but hasn’t really changed his spending pattern. However, he said that if the trend continues, he will try to save more money.
“I’d think about a Sam’s Club membership, and eat more canned food, which is cheaper food,” he said. “I’d eat out less.”
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