So says the New York Post at least. They released an article lamenting the price increases coming in Milk. It seemed to bring doom and gloom to those poor families who are expected to feel the pinch. To wit:
"I have a 10-year-old daughter, and all she drinks is milk. We drink at least two gallons of milk a week in the family," said Rachel Harkel, 49, an actress who lives in Boston but is often in New York for work.But she said the increase in price, along with the rising cost of gas, taxes the family budget.
So how much is the price supposed to increase? Two Bucks a gallon? Five bucks a gallon? From the article we find that in New York that "...the state-set price of a gallon of milk in New York rose 16 cents to $3.54." Sixteen cents. Even if you buy four gallons a week (most families average 1-2) that means you'll be paying $2.56 more per month. I'm pretty sure you can find $2.56 to continue to pay for milk the family! I think the media is being a bit alarmist here, but maybe it's just me.
Now, I understand when it comes to businesses who use large amounts of milk regularly, however we cannot expect the price of goods to remain stagnant. Those costs may be passed along to the consumer, but I think they may be able to handle a ten- or fifteen-cent increase in their family budgets.
The key here is to avoid panicking or using irrational measures because of the increase. If the Wal-Mart/Target/BJs location near you offers a lower price for milk yet its 15 miles away but the local grocery store is 3 miles away, it will not be in your best interest to drive 12 extra miles (wasting gas) to save twenty cents on milk.
What do you think? Am I missing something big here?
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2 comments:
I wonder if the family home is ready for this type of inflation? First milk then who knows what else? Don't think it is worth wastin the gas though?
I think the family home can take it. And I definitely don't think it's worth the fuel. Consider how much you pay for fuel (let's say 2.50/gal since I think you're in DC). If you get 25mi/gal, then that's 0.10 per mile. If you go 7 miles out of your way to save 0.30 on milk, you're lost $1.10 overall:
Scenario 1 - Drive 5 miles and pay 0.30 more: (5 miles to store+5 back)= 10 miles * .10 = 1.00 Fuel used. Add 3.00 for Milk = 4.00 for the trip.
Scenario 2- Drive 12 miles and pay 0.30 less for milk: (12 mi to store+12 miles back) = 24 miles*.10 = 2.40 Fuel used. Add 2.70 for milk = 5.10 for the trip.
It's a "small amount" yes, but so is the increase in milk prices (in the grander scheme). Sometimes people do the same thing when shopping for a gas station.
I'm not sure if you were being sarcastic or not :).
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