Wallet Watch newsletter: Inflation is up. Why is Aldi cutting prices?

Until at least Nov. 3, nearly one-third of Aldi's products will be cheaper than they were last year. That includes fresh fruit, vegetables and chicken breast. But, with regional inflation up 4.3% year over year, why is Aldi — and other grocers — slashing prices? 

That's not to say food is cheap. Grocery prices have spiked over the past few years, driven by factors like supply-chain disruptions during the pandemic and the wars in Ukraine and Iran. In August, groceries in the New York metro area, including on Long Island, were 31% higher than they were the same month in 2019, reports Tory N. Parrish. 

Those rising costs, combined with reduced benefits from the federal Supplemental Nutrition Assistance Program — widely known as SNAP, and formerly called the food stamp program — and the growing use of GLP-1 weight loss drugs, have led to declining grocery sales, pushing Aldi and other grocers like Costco, Stop & Shop, Walmart and Kroger to cut prices. 

To combat food waste (and save money), my household preps meals a few days in advance. On Sunday, I made salads for lunch through Wednesday and enough overnight oats to last all week. When we run out of premade food, we'll pop to the store again and start the whole process over.

I reported on a few ways to save money on groceries last year. Here are some tips from experts: 

• Freeze produce, meat and bread.
• Buy produce frozen or in season, and stock up on dry ingredients like beans or rice.
• Avoid brand-name and packaged snacks; they're usually more expensive. 
• Use coupons if you have them, but be careful that you're not spending more on gas than you're saving with the discounts.

Read more about how to save here, and what's going on with Aldi here.

And, as always, remember that I want to hear from you. How are you saving money? What do grocery prices look like near you? Do you have any money concerns ahead of the holiday season?

Ask away at walletwatch@newsday.com and I may answer in a future newsletter, with help from experts around Long Island.

From our readers

Christina Ann from Facebook asks:

Why is the cost of living so high — mortgage, food, gas, rentals?

My colleagues James T. Madore, Jonathan LaMantia and Tory N. Parrish addressed this with a feature that launched Wallet Watch back in May.

Besides high cumulative inflation since the pandemic, here on Long Island, the strain comes from everything at once — our housing, food, utilities and transportation are around 32% higher than the national average. Our proximity to New York City, many layers of government, high demand for a scarcity of housing and apartments, and some of the highest property taxes in the country all contribute to the high costs.

Gas and oil specifically are up right now because of supply constraints and disruptions in the global oil market since the U.S. war with Iran began in February, reports Victor Ocasio. The high price of fuel has contributed to rising grocery prices as well. 

Some tips on lowering your bills: 

• Lower your energy bills by limiting usage during peak demand hours. Also, look into more energy efficient appliances, solar panels and heat pumps. Your utility company may offer resources if you're having trouble keeping up with payments. 
• Plan ahead to compare childcare options. 
• Use an app like Flipp to compare grocery prices. 
• If you're shopping for a car, know your budget ahead of time and try to have pre-approved financing. Aim to spend less than 10% of your monthly take-home pay on auto payments. 
• Grieve your property taxes every year and check for exemptions.

Have a question you'd like to submit? Confused by a bill? Spotted a price hike? Ask our team and we might answer it in the next edition. Email walletwatch@newsday.com or click here.

By Brianne Ledda

brianne.ledda@newsday.com@brianne_ledda

Brianne Ledda covers personal finance and affordability for Newsday. She previously covered Southold and Greenport for The Suffolk Times and is a graduate of Stony Brook University.