Apparently the commodity boom has spread from oil, gold and other 'hard' commodities to 'soft' commodities such as corn and rice. Like most commodities, the local price of rice is affected by global supply and demand, so it seems likely that the price of rice in our local supermarket will go up more than inflation in the next few months. Since we had almost used up the 10kg bag of rice we had at home, I decided to stock up a bit. Usually the cheapest we can get good quality long grain rice is around $10 for a 10kg bag, so I bought 4x5kg bags for $5.02 each. I'm tempted to buy a few more bags, as a price rise seems a near certainty, but it doesn't pay to overstock and risk spoilage. While rice stores well, it does a have a shelf life of 24+ months.
While I was rice shopping I also had a look at the price of the same rice in smaller packs. A 250g bag was 'on special' for $1.50. This means that buying rice in 250g bags costs 6x as much as in 5kg packs!
Copyright Enough Wealth 2008