No news is good news:

I've just returned from a lovely two-week holiday with my family to see my parents, siblings and in-laws in the UK. I'm always strengthened when I see my parents and renew family bonds.

The thing that struck me on this visit was how unhappy many people are about the high cost and general standard of living in the UK. There seems to be an underlying tension in the air, which goes beyond the usual British sense of "It doesn't rain, but it pours". I struggled to find even a single bright and optimistic news item in the papers or on TV news reports.

The cost of living:

My father complained about high petrol prices (around £1.13 for a litre at the time) and that he spends over £15 a week on petrol for his Nissan Micra. Not that much for some people, but consider he's retired, living off a fixed pension and only drives around town.

I went to the supermarket to buy goodies I miss (chocolate, biscuits and tea bags) and noticed the higher cost of many items compared to two years ago. According to comparison website MySupermarket.co.uk, a basket of 24 basic items, such as milk and eggs, costs 15 percent more than a year ago adding £15 a week (or almost £800 a year) to the weekly shopping bill for a family of four.

The forecast is gloomy:

People are worried and it's no different here in the United States. Daily we're bombarded by reports on the credit crunch, foreclosures, lost jobs and stagnant wages. The economic forecast is gloomy and hearing this constantly I feel grey and gloomy, too.

It's widely known Americans have a passion for cars and it's resulted in the U.S. being the biggest consumer of fuel and energy. I'm not condoning it: I was glad to use public transport when I was back in the UK and would gladly use it here if more were available in the suburbs.

People love to drive here, especially long road trips in the summer, but not any more. Petrol (or gas as it's generally called) has shot up and high costs mean fewer road trips. Choosing between gas for their cars so they can get to work and extra food for their family is a reality faced by some lower- and middle-income families.

Upon returning from our holiday, I was taken aback by petrol prices rising to over $4 a gallon (between $4.19 and $4.39 locally). Prices were hovering below $4 just before we left for the UK. You may think that's cheap compared to UK prices, but consider in 2000 when I first arrived in the U.S. gas was around $1.50 a gallon (U.S. gallon is around 3.79 litres).

The face of U.S. hunger:

It's inconceivable there is hunger in the United States in 2008, yet government officials project 28 million Americans (1 in 10) will receive food stamps (means-tested food aid) by the end of the year. And there's a new face to hunger: many former middle-income earners who have lost jobs, fallen into debt and had their homes repossessed are swelling the ranks of the working poor.

Food stamp benefits average about $1 per person per meal in 2007, but according to the U.S. Department of Agriculture, food prices rose 4 percent in 2007, compared with an average 2.5 percent annual increase for the past 15 years. And 2008 could be worse, with a rise of as much as 4.5 to 5.5 percent. The reality is food stamp benefits don't keep pace with the rate of inflation and with current soaring prices, many families run out of food mid-month and have to rely on food banks.

Take nothing for granted:

Staples you buy each week can't be taken for granted any more. As per the U.S. Department of Agriculture, certain foods have seen dramatic spikes in prices - eggs are 30 percent more expensive than in 2007, milk 13 percent and cereals nearly 9 percent.

In the UK, a white loaf of bread is 20 percent more expensive than last year; butter is up 62 percent and free-range eggs are up 47 percent, among other day-to-day items according to MySupermarket.co.uk.

Dramatic price increases don't just affect food at home, but the favourite pastries I buy at the local bakery, the occasional hand-made chocolate at the candy store or my favourite plate of pasta at the local Italian bistro. The cost for food away from home is forecast to increase 3.5 to 4.5 percent in 2008.

The situation is similar in the UK with restaurants raising their prices, especially for rice, pasta and steak dishes; reducing portion sizes and substituting cheaper cuts of meats in recipes.

"Have you eaten rice yet?"

Rice is one staple I have an intimate relationship with, being of Hong Kong Chinese descent. Rice has such a central place in the Chinese culture that it's not for nothing we ask "Have you eaten rice yet?" Meaning, "Have you eaten yet?"

Rice is critical to the diet of more than half the world's population, and with shortages and prices rising to a 19-year high in March 2008, according to the World Bank, you can understand the United Nations setting up a task force to deal with the looming threat to growth and stability as 100 million people globally may be pushed into hunger if stocks remain low and prices continue to climb. Already shortages and high costs have sparked political instability, riots and protests.

Rice producers, such as Bangladesh, India and Vietnam, among others, have imposed tariffs or export bans, as they need to keep enough stock for their own populations and costs in check.

Should I be hoarding rice?

Food shortages:

Experts say there are no U.S. food shortages, although stocks of basics, such as wheat and soybean are uncommonly low. Some project there could be food shortages in UK in a matter of 25 to 50 years. Crucially, "The era of cheap food is over," say many officials, including Robert Zoellick, World Bank president.

Whether you attribute food prices to the weak dollar; a growing middle-class in developing countries buying more meat and processed foods; more crops planted for ethanol; high oil prices; poor harvests, partly due to climate change or drought in Australia - a big food exporter - the fact remains, it affects what you put into your shopping baskets.

Become a "localvore":

The one money-saving tip I can share is buy seasonal produce at local markets or farm stands for quality, taste and cost. I've become a "localvore" - someone who buys locally grown foods that support a healthier environment and lifestyle, part of the "ethical eating" trend in 2008.

OK, I'm not making my own washing powder from natural soap, Borax, baking soda and essential oils, as suggested by one mum online when researching for money-saving tips, but I can certainly make my own pizza for less than half the cost of a delivered one.

What's the story out there?

I surveyed my friends in different parts of the U.S. on their groceries, and everyone is feeling the pinch at the stores. They're paying $5 to $50 more on their weekly shopping bill compared to last year. All are concerned about the higher costs for dairy; eggs; produce; rice; bread; pastas; cereals and orange juice, and can't see an end in sight.

A few saved pennies add up:

My friends offer several money-saving ideas:

• Plan meals and buy only for the week. One big shop per week and that's it.
• Shop around stores for better prices.
• Buy generic and "specials," and use coupons, but check price per unit.
• Buy fewer packaged foods and cut "indulgences," such as cookies (biscuits) and soda.
• Buy less meat and deli meat and substitute cheaper ingredients in recipes.
• Buy frozen vegetables for versatility and cost.
• Buy locally grown produce in season.
• Cook more and cut down on eating out.
• Use up foods in cupboards.
• Cook inexpensive and healthy pulses.
• Cook cheaper "breakfast" items for dinner.
• Eat leftovers.
• Take packed lunches.
• Don't complain about the same meals!

Some of these things you may be doing already, but if anything people are now more conscious of food. More are buying and using it wisely and definitely not wasting it.

It reminds me of my parents' admonishments when I was young of never wasting rice; to eat clean my bowl of rice at every meal and to always remember how hard it is to grow, harvest and buy.

Sobering lessons indeed for people in the U.S.; a country regarded by many across the world as the land of plenty. And many certainly experience a harsher reality in the UK; far from the myth of golden paved roads.

Share your views:

Below, please share your observations and experiences of food prices and cost of living in the UK (or elsewhere) or email me direct at This email address is being protected from spam bots, you need Javascript enabled to view it .

Further Reading:

http://news.bbc.co.uk/1/hi/business/7362676.stm

http://www.telegraph.co.uk/news/uknews/1575614/ Food-cost-increase-adds-andpound750-to-annual-bill.html

http://www.telegraph.co.uk/news/1898348/ and163800-ayear-rise-in-family-grocery-bill.html

http://www.telegraph.co.uk/news/uknews/1584951/ Food-price-rise-affects-restaurant-menus.html

http://business.timesonline.co.uk/tol/business/industry_sectors/ consumer_goods/article3799327.ece

http://www.guardian.co.uk/environment/2008/apr/21/food.unitednations

http://www.telegraph.co.uk/earth/main.jhtml?xml=/earth/2008/04/22/scifood122.xml

http://www.telegraph.co.uk/news/uknews/1548917/ Growing-demand-for-biofuels-'could-lead-to-food-shortages'.html

http://biz.yahoo.com/ap/080414/inflation_squeeze.html

http://www.msnbc.msn.com/id/24316114/

SUSAN S. CHEUNG

http://spotlightnews.com/blogs/coffeemates/

 

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quietman - save money Posted 21:55 on 20 June 2008 Make sure you have a lid on your pan when you cook; keeps the heat in and cooks/boils faster. Also don't put too much water in pan when you are boiling something. I am even thinking of buying a cheap wood burning stove - you can also make it yourself - it's called a rocket stove, which is very efficient in burning wood. Reply | Quote

Susan S. Cheung - save money Posted 3:50 on 21 June 2008 Dear Quietman, Thank you for your money-saving tips. It's good to always remember energy efficiency and wastage as per you lid/water tip. I like to maximise cooking, so instead of boiling one egg for breakfast, I boil several and put them in the fridge when cooled and use the rest for egg mayo sandwiches for lunch and put some in the tuna pasta for a quick supper. I cook a big pot of food, one half for dinner and the rest to freeze for another dinner. Just have to get into that mindset. Reply | Quote

linda lau - money-wise Posted 23:22 on 21 June 2008 here in the UK, even my children are keeping an eye on the spiralling cost of petrol. the last time we dared to look, it was around £1.19 a litre and it has shown no signs whatsover of a halt or decline. i am becoming obsessed with the rising cost of living to the point where my mental maths is working overtime! i am becoming adept at remembering the price tags of generic and branded cooking products at different stores and deciding whether i should stock up while the price/s remain bearable. the largest increases have been in staples like utilities, fuel and food. low income families and pensioners suffer the most, while families with young children are increasingly finding themselves in an either/or situation instead of blithely footing the bills for their children's social/lifestyle needs. as we have a large back garden, we have decided to grow more vegetables than ever before. apart from the eco-friendly credentials and better quality produce, we find a perverse pleasure in thumping our nose at the prevailing economic gloom...at least while the enthusiasm and fear of rising prices reign. we haven't gone as far as rearing chickens in designer coops; deciding that we couldn't possibly recoup the cost of setting up the venture (in addition to the very real danger of decimation by the foxes in the neighbourhood). we've also decided that we'll forgo summer in tuscany this year. the boys will be spending time at tennis and cricket summer camps; we'll have barbeques and pot-luck dinners. with the current price of petrol, we'll even forgo the long drive to cornwall. instead we'll explore london using the victorian era underground, the dangerous bendy buses and packed as sardines overland trains. they won't come cheap either as the cost of public transport has increased a lot more than inflation. there you have it...a snapshot of British preoccupations in the current economic woes...apart from the atrocious weather no thanks to the curse of Wimbledon, of course! Reply | Quote

Susan S. Cheung - money-wise Posted 3:37 on 23 June 2008 Dear Linda, Thanks for sharing your thoughts, experiences and money-saving ideas. In the present economic climate, I think everyone, especially families, have to rethink their priorities about their "wants" and "needs" and compromise on their wants. Certainly, since we had our two children, we have had to weigh up whether we can afford our annual holiday back to England to see family and still pay the nursery school fees and saving for university fees and retirement, on top of daily expenses, such as groceries, utilities and petrol. Over the last four years, we have made many compromises, such as going back to England every two years; cutting back on eating out; taking lunch to work; stopping magazine subscriptions and having hair cuts every eight weeks instead of each month. Every penny saved goes back into savings for things we treasure the most, such as going home to the UK and connecting with family. We feel guilty enough as it is that the grandparents don't get to see our children on a regular basis, so all our efforts go into saving for our travels back to England. I think it's a mindset - don't buy unless you have the money and don't put the large purchases on credit cards. In the big picture, a huge number of people in the world survive on less than one dollar a day. Therefore, we feel fortunate to live within our means, with food and shelter, and that is a tremendous blessing, even as we have to tighten our belts. Reply | Quote

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