CBS News: Colorado experts explain why grocery prices keep rising, provide tips on saving money today

March 5, 2024

Inflation is cooling right now, but the prices of groceries and food are still rising. The latest consumer price index data shows that grocery store prices are 25% higher than in January 2020.

A Metropolitan State University of Denver professor explains why that basket of food from the grocery store has not seen any relief when it comes to your wallet. Plus, a local woman who used to teach couponing classes shares how you can save a few bucks on your grocery store bill.

Dr. Kishore Kulkarni, an economics professor, said many people's spending habits have changed since the pandemic started, and that's the new norm we're living in. Plus, prices of food and groceries are always the reflection of supply and demand. However, the demand has increased while the supply has not.

"Because the supply is increasing at a slower rate than the demand is, and that's why prices are going up," said Kulkarni.

 Kulkarni also mentioned people are still not going out to eat at restaurants as much as they used to. Instead, they're going grocery shopping or ordering their food online.

He said, too, that the pandemic is still having an impact on the supply chain. Imports from other countries and food deliveries across the country are also still impacted because of labor shortages and not enough workers, which also contribute to a higher prices.

"The demand is obviously going up, because we have a larger population and people have more income and pandemic recoveries are still here. So people are actually spending more on groceries."

He also added there are a few staple grocery store items where price increases are felt the most.

"The meat, eggs, and milk and all these prices, which we will call them necessities, those necessities are not really having a large decline. The prices in these items is actually increasing faster," said Kulkarni.