How to Manage Money When Inflation Causes Grocery Prices to Rise

Picture this — You’re shopping in the grocery store, dropping things into a cart — just the normal stuff: eggs, milk, bread, a couple vegetables, ingredients for that one dinner you know works every time, and a couple pre-made sauces for the work week. You’ve done this before, you know where everything is. In and out, one hour. Reaching the checkout, you’ve managed to beat the rush and find an empty till.

The motion of swiping barcode after barcode is familiar and easy.
The total number staring back at you as you go to pay is not.
What?
Somehow, you’ve busted your budget with the same shopping list you’ve used for the past eight months.

Rushing home, you lug the last of the bags inside and scrounge around for those past receipts. They’ve got to be around here somewhere. Buried in a drawer, you uncrumple the glossy strips and lay them side by side. Ignoring the little treats and special items, you compare the essentials — everything you buy regularly.

Gradually, you notice the changes; things you didn’t even register at the time. Eggs went up fifty cents, then a dollar. There’s less meat per dollar because they shrunk portions little by little. What is going on?

About Inflation

You search “why are groceries so expensive” only to be bombarded with article after chatroom after blog post blaming inflation and bemoaning the state of the economy. You’ve heard of inflation before but always figured it was something only real estate agents, stockbrokers, and people really into finance kept track of. Something abstract that didn’t affect you all that much. But maybe it did? What is inflation, anyway, and is it to blame for pricier groceries? 

On a surface level, maybe. But on a deeper level, you’d find that it’s not inflation’s fault; that inflation is just the name given to the reality that your money doesn’t buy as much as it used to. Why is that?

Sure, it's influenced by things like supply and demand, production costs, and policies set by people in suits. But underneath all of that? It's also human behavior. Wanting more, feeling undervalued, comparing ourselves to others - these are natural responses. And when enough people start asking for more - higher wages, bigger margins, better deals - prices adjust to meet that demand. It's not about blame. It's about recognizing that our economy is shaped by millions of individual choices, often rooted in a mix of survival, ambition, and the belief that things should be better. It creates a ripple effect and because of this, prices continue to rise and rise and rise, and they don’t come back down.

What can YOU do?

So now you know a little about why your money doesn’t go as far, but what do you do about it? What can you do about it?

First things first, don’t look at the whole and panic. Inflation’s going to do what it’s going to do. Instead, focus on the pieces you can control — your own money. 

One great way to see how inflation is affecting your budget is by using an inflation calculator. These tools can show you how much prices have risen over time and help you adjust your grocery budget accordingly.

Remember, you CAN control what you buy, when you buy it, and from where. You can choose where you want to invest and how much. 

Odds are, inflation will keep going up every year, so break what you can control into bite-sized pieces until it becomes manageable. 

Here are 8 ideas to get you started:

1. Know your Numbers - start by giving your spending plan a tune-up. Prices change and so should your plan. Shift spending where it makes sense. It's not about cutting everything it's about realigning with what matters most.
2. Look for Easy Wins - Cancel subscriptions you no longer use or need, call service providers and ask for better rates, use up what's in your pantry before buying new. 
3. Prioritize Flexibility - When prices are rising fast, build in a buffer for important categories. A little extra in those key categories vs. sticking to a rigid budget will help alleviate stress.
4. Boost Income - One cure to increased expenses is an increase in income. That could be starting a side gig, asking for a raise, or selling things you don't need.
5. Become a More Intentional Shopper - Check your fridge and freezer for expired items or dead vegetables. It's an indicator that you are overbuying certain items.
6. Get Creative - When your friends want to go out for drinks, offer to be the designated driver (water is free).
7. Overcome Impulse Buying - Keep some frozen pizzas or chicken nuggets in the freezer to help you resist ordering in when you don’t feel like cooking.
8. Avoid Checkout Surprises - Keep track of your total as you shop or do a quick add-up before you check out. It's a simple way to stay in control, allow for adjustments and avoid sticker shock.

A Fun Exercise: Is it Worth Your Time? Add up some of your regular expenses - subscriptions, streaming services, takeout, little splurges - then divide the total by your hourly wage (or best guess). That'll show you how many hours you're working to pay for those things. It's not about guilt or cutting everything out. It's simply a way to ask: Is this worth my time? When you start seeing purchases in hours instead of dollars, it becomes easier to spend in a way that actually feels good.

And most importantly, don’t forget to breathe. You’ve got this! 

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About the Author

Kathy Steffan is a certified Financial Accountability Coach™ with over 14 years of expertise guiding young people who are ready to break through financial limitations to experience a vibrant and fulfilling life. Kathy’s creative background brings a fun twist to the whole process of learning about money.  She spent years researching and finally discovered the ‘money formula’ is unique for each person – that’s when she decided to become a financial coach.

Kathy coaches virtually from Calgary, Alberta, Canada and serves people from all around the world.