By COURTNEY DUFFIELD

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cduffield@gctelegram.com

Bread and other products may be costing a little more dough this year, so area residents are trying to figure out ways to stretch their money.

"Cooking oil has almost doubled in price, flour has also doubled in price, and I heard cereal is also about to double in price," said Jan Hagen, a Garden City resident. She said she is spending about $30 more each week on groceries and would cut out cereal and snack products if prices continue to increase, but will continue to by bread and cheese.

While the increase, estimated at 4 to 5 percent this year, may not seem like a lot, residents are feeling the pinch.

Hagen said she is switching from name brands to store brands in order to save money.

Sheila Lowrie, spokeswoman for Dillons, said that overall, Dillons is seeing more people buying corporate brands, such as Dillons' Kroger products.

Another way for people to get the most out of their money is comparison shopping.

Maria Vazquez, Garden City resident, said she shops at Wal-Mart because she thinks the prices are better than other places in town.

Vazquez said her weekly grocery budget has increased about $30 per week. She said she has noticed an increase in the price of cheese, fruit and baked goods, but will continue to buy necessary items such as milk, vegetables and beef.

According to the U.S. Department of Agriculture Web site, the Consumer Price Index, or CPI, for food items is predicted to increase 4 to 5 percent in 2008.

The USDA Web site also states that while the cost to eat at home increases, the cost to eat out also will increase. Combined, these price changes are expected to mean the highest annual increase since 1990.

The Web site states that the main reasons for these higher food costs include a stronger global demand for food, increased U.S. agricultural exports resulting from stronger demand, a weaker dollar and weather-related production problems in some areas of the world, and an increase in some food commodities, such as corn, for bioenergy use.

This increased demand has led Steve Isbell, a new Garden City resident, to shop outside of the city if he finds cheaper prices elsewhere.

"I have notice it big time," Isbell said about increasing prices. "Meat products have gone up tremendously, so have dairy products."

Isbell said he has taken a cooler to Wichita and bought meat and cheese there because prices are better. He also has cut out buying Coca-cola and other non-necessities.

Isbell said his family is finishing the school year out in Wichita, after which they will move here.

"I'm budgeting for two households," he said, adding that he is spending about the same amount of groceries each week, but buying half as much food. He also said he is excited for the SAMS Club to open up because he is hoping the prices will be cheaper.

To help customers cope with tighter budgets in a slowing economy, Dillons introduced a gift-card program last week and is seeing an increase in customers using the fuel rewards program for 10 cents off per gallon of fuel at Dillons pumps for every $100 they spend at the store.

The new program involves customers bringing in their federal economic stimulus check that began going out last week to exchange that money for gift cards to be used on groceries.

Customers can purchase a $300, $600, or $1,200 gift card with their Federal Stimulus Check and Dillons will add an extra 10 percent to their gift card.

So a $300 check from the government, would become $330 to be spent on groceries at Dillons. Lowrie said the program just started on Friday, but already it is popular, and Dillons is pleased with the results.

"We realize that grocery expenses are significant expenses and that groceries are something every one needs," she said.

At Wal-Mart, spokeswoman Ashley Hardie said Wal-Mart strives to be the store that lowers prices first and raises them last.

"When our grocery suppliers bring price increases to the table, we don't just accept them, and increases do not necessarily show up in the retail price," she said. "We will continue to work closely with our suppliers in every way possible to keep the prices down for our customers and help them manage their grocery budgets."