Bagel inflation

I have been meaning to write this post for several weeks but have not. As you already know, I am an amateur economist. I have recommended that there are a few tax-free days and that gas prices be cut by 50 cents a gallon to help stimulate the economy among other suggestions. I know that this will not completely resolve our problems, there is a major credit and home foreclosure crisis, but this may impact the inflation I am seeing. My energy costs are increasing thanks to my wonderful electric company and as I stated, gasoline prices are ridiculously high as well. This of course has had a ripple effect on the economy as it has caused the cost of everyday goods to increase as well. Most notably my grocery bill has increased, however it has caused my bagel bill to increase 10 cents over the past year. Bagel Bill?

A few years ago I lived a couple of blocks away from a very good bagel shop, the bagel factory. As I like to have breakfast on the move, a fresh bagel everyday fit the bill. It is healthy and inexpensive. A warm, fresh bagel does not require cream cheese which usually increases the price of a bagel from 80 cents to 2.20. Man that cream cheese is expensive. Of course there are ways to circumvent this monstrosity, primarily buying a tub cream cheese at the grocery store for roughly the same price and store it in the refrigerator at work. Walla, you save yourself some nice cash. Moving away from the cream cheese tangent I need to get back to the whole point of this blog entry, the bagel.

As I stated before a quick bagel on the run is a nice healthy breakfast. When I first moved to this unknown city in Maryland I quickly located a convenient bagel shop, Bagel Bob’s (for security purposes the name has been changed) who could rapidly serve me a fresh bagel. The cost was 70 cents and now I was a regular. As time progressed I realized that I can save myself some money by not purchasing a bagel, or two. I became less dependent on the bagel when, after a new ownership group took over, the cost increased to 75 cents and later to 80 cents.

After living in unknown city for 2 years I moved to a new zip code, however I now had a new route to work and the previous bagel place was simply out of the way. Upon the horizon came a new bagel shop, “Stupid sports fan bagel shop” (for security purposes of course). Naturally they support a team that I don’t like, but they had even better bagels for a cheaper price, 70 cents. I hit the jackpot. As I continued to go to “Stupid sports fan bagel shop” their prices have continued to rise once to 75 cents and now 80 cents in just 6 months. I have gone from being a regular 6 AM bagel supporter to a “bandwagon” bagel supporter (see previous note about saving money). When I asked why they raised the prices, I was told it was about the cost of flour. Of course being a smart ass, I asked how come you don’t just make the bagel hole bigger. It would cost just as much and you can use less flour.

Now of course I am contracting myself. I am mad when they reduce the size of my yogurt, but want a larger bagel hole. The truth is how often do you check the size of your bagel hole? Needless to say I am not happy that in the span of 6 months the cost of my bagel has risen 10 cents. Let’s fix this economy soon. If we don’t we will see bagel prices over $1!!! Argh.