Commissaries not immune to weak dollar

[unhappycamper]

A strong euro can make items purchased locally by the Defense Commissary Agency, like the produce seen here at the Mannheim, Germany, commissary, more expensive for Americans.


Commissaries not immune to weak dollar
By Matt Millham, Stars and Stripes
European edition, Monday, November 26, 2007

It should come as no surprise that Americans stationed in Europe are spending more at the commissary now than they were a year ago.

Off-base prices, driven by the strengthening euro, have driven some Americans back inside the gates.

But U.S. installations aren’t always the sanctuary overseas Americans hope they are. Things like fresh food and light bulbs bring higher prices from outside the gate onto U.S. bases.

While the majority of items sold in commissaries come from the U.S., an array of local fare, some considered essential by American appetites, is bought in Europe by the Defense Commissary Agency using the local currency.

Fresh dairy and meat products, fresh produce, fresh eggs, coffee, fresh bread and bakery items, and 220-watt light bulbs are among those items, Kevin Robinson, a DeCA spokesman, wrote in an e-mail to Stars and Stripes.

Though prices on those items have increased only marginally or not at all in euros over the past year, the exchange rate has driven costs up for locally purchased goods.


Rest of article at: http://stripes.com/article.asp?section=104&article=50515

[Solly Mack]

1. I do a lot of my food shopping there

and I've experienced a 40 dollar increase in what I pay every two weeks for groceries.

I still hit the local farmer's market and meat markets as well. (but I am buying less)

Coupled with the fact that we pay bills in euros as well....it's taking a big bite out of a dollar based paycheck.

[unhappycamper]

2. How are things on the economy?

When I was stationed in Germany in the early 70s, Tricky Dick took the US off the gold standard. That was an immediate 25% pay cut. Which hurt. A lot.

All the economic news I'm seeing in the military rags tells me our folks are hurting.

[Solly Mack]

3. It hurts the pocket but I still buy some things - just less

Prices haven't gone up, really, on the economy...just the dollar going down

Some items we have to buy on the economy - no other option - and those items are far more expensive now with the conversion rate.

I use euros for phone, cable, and DSL..so bills have effectively gone up because of the weak dollar.

We expect an increase in COLA next month and that'll help some.

A lot of soldiers must travel several miles (and more) between where they live and where they work and if they forget to get gas coupons or aren't near enough to a station that accepts the coupons, then the cost must be paid in euros. Another increase for the soldier.

Like a lot of the people here, we're buying less and digging in...