Starting July 1, Illinois residents will once again be subject to a grocery tax after a year-long suspension. The Department of Revenue (DOR) has announced that shoppers will now pay an additional 1 percent on food purchases at supermarkets.
Illinois Grocery Tax To Be Reinstated
However, it’s important to note that certain items, such as alcoholic beverages, soft drinks, candy, and food prepared for immediate consumption, were not included in the initial tax suspension, according to The U.S. Sun. Consequently, there won’t be a price change in those categories.
In addition to the Illinois grocery tax reinstatement, Illinois residents will also face an increase in gas prices for the second time this year. The DOR has reported a 3.1-cent spike, bringing the total increase to 6.2 cents in 2023.
From July 1 onwards, there will be an increase in the motor fuel tax to 45.4 cents per gallon, which is higher than the 42.3 cents recorded in January and the 39.2 cents observed during the corresponding period last year.
While the Illinois grocery tax reinstatement and rising gas prices may cause concern for consumers, there is some relief on the horizon. The latest consumer price index (CPI) data for the 12 months ending May 2023 shows a decrease in inflation to 4 percent.
The CPI rose by 0.1 percent for the month, following a 0.4 percent increase in April. Over the past year, the price of food has increased by 6.7 percent, with eggs being one of the most expensive household staples.
Illinois Grocery Tax And Gas Prices
Although gas prices have seen a recent decrease of 19.7 percent in May, the national average price for a gallon of gas remains around $3.59, up approximately 6 cents from a month ago. However, this is a significant drop from the average price of $5.01 per gallon at the same time last year.
While inflation has been a concern, some retailers, like Walmart, are taking steps to help customers find affordable items by lowering prices. It’s important to stay informed about the impact of high inflation on household budgets and consider adjustments accordingly.
Additionally, for those who hold Costco memberships, understanding how high inflation affects the cost and value of membership is essential.
As Illinois grocery tax reinstatement and gas prices continue to fluctuate, keeping a close eye on personal finances and exploring ways to mitigate the impact of rising costs can help navigate these challenging times.