Food costs account for more than 11% of Americans’ income, highest in 33 years

[New Sancai Compilation First Release] US federal data shows that soaring grocery bills and soaring restaurant prices have caused Americans to spend 11.3% of their income on food, the highest amount in 33 years.

That's the highest since 1991, when food costs accounted for 11.4% of Americans' income. At the time, President George H.W. Bush was preparing for the Gulf War, "Nirvana" was topping the music charts, and the "Terminator: Judgment Day" movie was playing in theaters.

Although the consumer price index has fallen from a high of 9.1% in June 2022 to 3.1% last month, restaurant prices are still rising, rising 5.1% last month from a year ago. According to CPI data, grocery prices will continue to rise by 5% in 2023, and fast food prices will rise by 5.8%.

Steve Cahillane, chief executive of snack food giant Kellanova, told the Wall Street Journal: "If you look back at periods of inflation in history, there's really no period that you can point to. [Food] prices will come back down."

Moody's chief economist Mark Zandi agreed, telling the New York Post: "2022 and 2023 are boom years for restaurants, which gives them room to raise prices."

In fact, restaurants, fast-food chains, grocery stores and food manufacturers are dealing with high labor costs and expensive commodities like beef and cocoa.

In 2023, the cost of oils and fats will increase by 9%; the cost of sugar and candy will increase by 8.7%; and the cost of cereals will increase by 8.4%.

McDonald's CEO Chris Kempczinski said earlier this month that the company would be working harder after reports that a Big Mac meal in Darien, Connecticut, was selling for $18. to provide customers with better value. That’s even more than the shocking $15 Big Mac prediction economists made two days ago.

(Compiled by: Wang Jimin)

(Editor: Jiang Qiming)

(Source of the article: Compiled and published by New Sancai)