Does food from scratch cost more than packaged food?

Is it really true that processed food is cheaper than the real thing? Let's start by reading the article below which is my inspiration for writing this blog entry.

Article: The Shopping Cart Index: What Our Grocery Bills Reveal About the Food Economy

What else is cheaper to make from scratch? I've already started a list and will continue to keep it as I experiment with the most commonly found foods in the grocery store and what they cost to make. Of course, there will be cost differences depending on where you shop (Whole Foods vs. Walmart) so for the sake of comparison, I'm going to use Safeway's online shopping for all of my food choices.

Here is how it will work.

1. Each week I will pick a packaged food product to make from scratch.
2. I will do a price comparison using Safeway's online shopping store.
3. I will compare the nutrition of each version for quality control.
4. I will post the results on this blog for all to see!

My first Choice: Wishbone Italian Dressing

Results...coming soon!