Inflation is On the Way. How Stockpiling Can Help.

by Julie on April 5, 2011 · 13 comments

We’re already seeing prices jumps at the gas pump, but apparently increases in more areas are on the way.

Wal-mart’s CEO told USA Today last week, that inflation is going to be serious and that they’re “seeing cost increases starting to come through at a pretty rapid rate.”

A retail strategist quoted in the same article calls the upcoming inflation “unprecedented in recent history” and says that we can expect to see prices start to increase at all retailers beginning in June.

Inflation Talk is Hitting the Blogosphere Too

There was an interesting discussion about Investing Strategies for Inflation at Barb Freidberg’s blog last week. The guest author suggested commodities investing and currency exchanges as a way to hedge against inflation.

Both Barb and the guest author, as well as many who commented on the post, warned against the risk involved with currency exchanges in particular. So while the suggestions were interesting, I don’t know how practical or even advisable they are for a Family CEO like you or me.

Stockpiling: An Inflation Fighting Tool That Anyone Can Use

I made a suggestion in the comments of that post, and I’ll repeat it here, that one thing anyone can do if they feel inflation is on the way, is to stock up on the things that they use regularly. Here are some ideas:

Essentially anything you buy regularly and can create a little stockpile of is a good candidate.

If you use some smart shopping techniques in your stockpiling (using a price book, shopping sales, cutting coupons) so much the better. In addition to lowering the cost of your stockpile, you’ll develop a set of skills that will continue to benefit you when inflation hits and you’re forced to buy things at a higher price.

Do you have suggestions for other things that would be good to stock up on? Do you feel inflation is a real threat? What are you doing to combat it?






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Echo April 6, 2011 at 5:04 am

I know the price of coffee has almost doubled since late last year. Most people can’t give up their morning cup but it’s worth watching for sales and stocking up for your own home brewing to save money.

Julie April 6, 2011 at 2:41 pm

Good suggestion, Echo. My husband is a coffee drinker. It’s crazy the way coffee prices fluctuate.

Barb Friedberg April 10, 2011 at 1:50 pm

Stockpiling is a time tested strategy as you are freezing the price today when you buy the goods. A few caveates; you need storage space, the items must be non-perishable. Actually, we are stockpiling classic clothes bought on sale as cotton costs are rising substantially. Nice article.
Regards, Barb

Julie April 11, 2011 at 11:12 pm

Interesting approach on the clothing, Barb. Thanks for the comment!

Kathryn C April 10, 2011 at 7:38 pm

Hi there, I definitely think inflation is a real threat. People need to remember to ask for pay raises that match inflation, once it kicks in. The pay raises that people get are usually on par with inflation, but since it’s been so low, a lot of people haven’t been getting standard annual “inflation” raises. Once it picks up, people need to ask….in order to make sure they can afford their coffee!

Julie April 11, 2011 at 11:13 pm

Good point, Kathryn. Once inflation starts to rise rapidly, it can eat up any pay raises that people receive.

Pat Veretto April 12, 2011 at 4:53 pm

I totally agree. I think stockpiling (within reason) is the absolute best way to deal with rising prices as well as a still unstable economy. Also, there have been hints of some food shortages, which is another reason to stock up on things you use all the time.

Julie April 17, 2011 at 3:41 pm

I agree, Pat. Thanks for your comment. Looking forward to checking out your site.

Are you the Pat that used to be the frugal living guide at About.com?

Kicking Carbs April 16, 2011 at 12:21 pm

Found you via WAHM. Really like this site. Great job!

The problem with stockpiling is it takes a lot of space and you have to be sure you’re going to use stuff, plus be saving money for the next stock up trip. And stockpiling doesn’t make shopping cheaper, it just saves in the moment. Which may not last long.

I have found keeping a full pantry to be convenient but our grocery bills are still as high as they ever were. Because stocking up never ends.

I would say, jump on sales but don’t try to stock every little thing. Much better to make big purchases (like energy efficient appliances) now before the price inflation hits.

M

Julie April 17, 2011 at 3:44 pm

Thanks for visiting, M. It’s nice to connect with another WAHM site user. Love those forums!

My experience has been different than yours. I have cut my grocery bill significantly while stocking up at the same time. But you’re right – stockpiling alone won’t cut your grocery bill in the short term. You have to combine it with smart shopping techniques.

Danielle B June 20, 2011 at 2:04 pm

Great article! Stockpiling isn’t just an idea anymore around here, it’s a way of life! :-) I remember when I first started using coupons with sales to start our stockpile. My husband kept saying, “Why do we need 10 bottles of shower gel when we only use 1 at a time?” A week later he had run out of shower gel and told me so I could put it on the shopping list. I smiled and said, “Nope, just grab some out of the closet!” I saw that look of realization wash over his face as it all clicked! He’s been my biggest help in stockpiling since!

I actually wrote an article over at http://www.moneysavingmom.com titled, “Sacrificing to Start a Clothing Stockpile”. Here’s the link in case you’d like to check it out! http://moneysavingmom.com/2011/06/sacrificing-to-start-a-clothing-stockpile.html

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