The Consumer Price Index in June jumped 9.1 percent compared to one year ago. That is the highest rate of inflation in 41 years. The number is even higher for food. That is 12.2 percent higher than it was last June.
"Fuel costs rising, I think that has played a big part into it, and of course, the labor issues that we've been having," Ray Mahaiuddin, Owner of the Sparks Grocery Outlet Bargain Market said. "A lot of our vendors, they are experiencing labor issues, which interrupts the supply chain, and of course, that trickles down."
Mahaiuddin has owned the Sparks grocery store since March but he owned another one in Fresno for eight years before moving to northern Nevada. He has seen a significant spike in food prices since last year and shoppers are adjusting.
"We've found that their basket size has grown," Mahaiuddin said. "Shopping trips have decreased, so I think they're just making less trips but they're trying to bump up more on their groceries."
He says that makes a lot of sense because of the high cost of fuel. Shoppers say they are finding different ways to adjust their grocery budgets.
"I have to buy cheaper things instead of more expensive things that I'm used to buying," Kim Ratliff, Reno resident said.
"I don't buy meat as much anymore," Gregory Tremblay, Sparks resident said. "I eat more fruits and vegetables, things that are more affordable."
Others have noticed that more people are shopping at discount stores like Grocery Outlet to find lower prices and other deals.
"There's a Grocery Outlet sort of closer to where I live, that I go more often to, but their business is greatly increased because it's much cheaper than the regular markets," Ron Tarpley, Sparks resident said.
Mahaiuddin says there are some simple things people can do to save money. One of them is to shop without a grocery list. That allows people to look for low prices instead of buying something that might not be on sale.
"You're going to see things that the savings are so significant, you can't pass up on it," Mahaiuddin said. "Maybe you're not thinking about it in that moment but you can certainly build your meal around those items."
Mahaiuddin says a lot of his customers are seniors and veterans on fixed incomes. Others are on government assisted food programs, so the higher prices have a larger impact on them.
"They're not picky with the brands or the size of the items," Mahaiuddin said. "They're just looking for something to eat, to get in their pantry."
"Hamburger meat is an extra dollar," Tremblay said. "If people are on a budget, you know, retired people, it's extra money. They can't afford it."
Another way that people can save money is to follow Grocery Outlets social media and website, or sign up for emails.
"If you keep looking at social media, you keep looking at Grocery Outlet websites, you sign up for emails, you're going to get coupons, constantly coming your way," Mahaiuddin said.
Grocery Outlet is able to get 70-80 percent of its product at a discount. Manufacturers will project a certain amount of cases but only sell half of it. That allows Grocery Outlet to buy the excess inventory at a lower price, which it passes down to the consumers.
The company's stores are also participating in the "Independence From Hunger" campaign in July. It is asking customers to donate $5 in return for a $5 coupon for a future visit. Customers can also round up their change or buy ready-made bags. The goal is to raise $3 million dollars for various food banks. It is about halfway to its goal.
