Americans have not spent this much of their incomes on food since the Gulf War: feds

Published

2 months ago

February 22, 2024

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Soaring grocery bills and restaurant tabs are eating up more of Americans’ paychecks than they have in three decades, according to the federal government.

In 2022, US consumers spent 11.3% of their disposable income on food as raging inflation jacked up prices on everything from bacon, eggs and milk at local supermarkets to burgers and burritos at fast-food joints, according to data from the Agriculture Department.

That’s the most since 1991, when President George H. W. Bush was ramping up the first Gulf War, Nirvana’s “Nevermind” was topping the charts — and food purchases accounted for 11.4% of shoppers’ disposable income, the USDA said.

The problem is showing no signs of letting up as restaurants, retailers and manufacturers alike continue to grapple with soaring labor costs and the price of key commodities including beef and cocoa continues to ratchet higher.

According to the USDA, food-at-home prices increased another 5% last year compared to 2022 — or double the historical average rate at which retail food price inflation rose per year between 2003 and 2022.

Recently, those increases have slowed — up 1.2% in January compared with a year ago.

Still, that’s leaving shoppers with punishing tabs for everything from meat to produce to spaghetti sauce.

Meanwhile, “away from home” food prices at restaurants surged a staggering 5.1% over the same time period, according to the Consumer Price Index.

In 2022 and 2023 it was boom times for restaurants, which gives them latitude to raise prices,” Moody’s chief economist Mark Zandi told The Post.

Fast-food prices shot up even more — 5.8%, according to the government data — a trend that’s set to continue after 22 states raised their minimum wage last month.

Earlier this month, Chipotle said it will be forced to further raise prices as California after a $20-an-hour minimum wage law takes effect there in April.

The menu hikes are already taking a toll, with McDonald’s admitting this month that customers making less than $45,000 per year are eating at home more frequently as grocery prices come down.

I think what youre going to see as you head into 2024 is probably more attention to what I would describe as affordability, McDonalds chief executive Chris Kempczinski said on an earnings call with analysts earlier this month.

But Zandi is skeptical whether restaurants will lower their prices.

Businesses really dont want to cut prices, Zandi said. They will do it if demand is falling and they have no options, but the more palatable strategy is to hold the line until affordability is reestablished.

Meanwhile, corporate profit margins economy-wide have been rising, Zandi said.

Food prices were thrust into the spotlight on Super Bowl Sunday when President Joe Biden posted a video to social media in which he called out snack companies for “shrinkflation.”

“Some companies are trying to pull a fast one by shrinking the products little by little and hoping you won’t notice,” Biden said in a video posted on X, formerly known as Twitter, ahead of Super Bowl LVIII.

“Give me a break. The American public is tired of being played for suckers,” he said.

Biden, who offered no solutions or policies to address the practice, did not name any specific companies but several brands were shown in the video, including Gatorade, Doritos, Breyers and Tostitos.

We appreciate that the President has to deflect attention away from inflation that has lingered during his administration, said David Chavern, president and CEO of the Consumer Brands Association, in a statement.

Chavern added that the group would like to work with Biden on real solutions that benefit consumers.

Last year, the prices for fats and oils rose by 9% while the cost of sugar and sweets jumped 8.7%. The rate of price increases for cereals and bakery products stood at 8.4% last year.

The only food item that saw its price decline last year was pork, which was 1.2% cheaper compared to 2022, according to USDA data.

Meat prices grew but at a slower pace than their 20-year historical averages. Beef and veal prices rose 3.6% while eggs were 1.4% more expensive last year compared to 2022, the USDA said.

The cost of fresh fruits rose 0.7% while fish and seafood prices ticked up 0.3%.

With Post Wires

UK

Sadiq Khan secures convincing win over Tory rival in London mayoral race

Published

2 mins ago

May 4, 2024

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Sadiq Khan secures convincing win over Tory rival in London mayoral race

Labour’s Sadiq Khan has secured a historic third term as London mayor, seeing off Tory challenger Susan Hall.

It followed “wild rumours” the incumbent could have suffered a shock defeat, although both sides subsequently said they believed Mr Khan would win.

He received 1,088,225 votes (43.8%) to be re-elected, a majority of nearly 276,000 over Ms Hall, who secured 812,397 votes (32.7%).

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The results as they come in

It was the first time any candidate for London mayor has won a third term in office, with Mr Khan’s predecessors Boris Johnson and Ken Livingstone both having served two terms.

As he took to the stage to make his victory speech, the re-elected mayor was booed and heckled with a shout of “Khan killed London” by the far-right Britain First candidate, who received fewer votes than Count Binface.

Speaking at City Hall, Mr Khan said: “We faced a campaign of non-stop negativity, but I couldn’t be more proud that we answered the fearmongering with facts, hate with hope, and attempts to divide with efforts to unite.

“We ran a campaign that was in keeping with the spirit and values of this great city, a city that regards our diversity not as a weakness, but as an almighty strength – and one that rejects right hard-wing populism and looks forward, not back.”

He also thanked his family for their support, but apologised for them having to deal with “protests by our home” and “threats”.

While congratulating Mr Khan on his victory, Ms Hall said he should stop “patronising” people who care about London.

When she had previously challenged him in a mayoral debate about “gangs running around with machetes” in the capital, he had said she should “stop watching The Wire” – a gritty US-based crime drama.

In her concession speech, she said: “The thing that matters the most, and to me, is reforming the Met and making London safe again. I hope Sadiq makes this his top priority.

“He owes it to the families of those thousands of people who have lost lives to knife crime under his mayoralty.

“And I hope too that he stops patronising people, like me, who care. This isn’t an episode of The Wire, this is real life on his watch.”

The pair had repeatedly clashed during the campaign, fought out amid concerns about knife crime and the handling of pro-Palestinian marches in the capital.

Just recently, Mr Khan had described his Conservative rival as the “most dangerous candidate I have fought against” over her past social media activity.

Hitting back, Ms Hall said she had “learnt” from her mistakes and branded his comment “outrageous”.

A clear dividing line between the candidates had been Mr Khan’s controversial expansion of the ultra low emission zone (ULEZ), which has been the subject of ongoing protests and which Ms Hall had pledged to scrap.

During the race, the Conservatives were forced to delete a clip used in an advert against Mr Khan’s record on crime after it emerged it used footage of a stampede at a New York subway station.

The result comes after Rishi Sunak’s Tory party took a hammering at the local elections, shedding hundreds of seats and losing more than 10 councils.

Meanwhile, Labour has made gains across the country, winning the Blackpool South by-election with a 26% swing from the Tories and taking control of councils in key battleground areas.

The party also picked up new mayoralties, including the critical regions of East Midlands and York and North Yorkshire, which includes Mr Sunak’s Richmond constituency.

Labour leader Sir Keir Starmer said: “This is effectively the last stop on the journey to the general election and I am really pleased to be able to show we are making progress, we have earned the trust and confidence of voters and we are making progress towards that general election.”

Mr Sunak has taken consolation in the Conservative victory in the Tees Valley mayoral race, which was retained by Lord Houchen and seems to be enough to calm rumblings among discontented Tory MPs.

However, the crunch contest for West Midlands mayor remains on a knife-edge.

Labour has also not had it all its own way, losing control of councils in Oldham and Kirklees after victories for independent candidates opposing the party’s stance on Gaza.

Labour also lost seats on other councils including Bristol, where the Greens extended its lead as the largest party and could now be set to run the city council despite narrowly failing to win outright control.

Notably, all 14 councillors in the newly created Bristol Central constituency are now Green, where the party is looking to unseat Labour’s shadow culture secretary Thangam Debbonaire at the general election.

Sky News elections analyst Professor Michael Thrasher also says although the results are bad news for the Tories, they do not put Labour on course for an overall majority in the Commons in a general election.

The Tories have so far lost 473 seats and control of 12 councils, while Labour has won eight councils and gained 185 seats.

The Liberal Democrats gained 104 seats and won control of Dorset council from the Conservatives, while the Greens are up 74 seats.

Sports

Kentucky Derby to remain on NBC through 2032

Published

17 mins ago

May 4, 2024

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Kentucky Derby to remain on NBC through 2032

Associated Press

May 4, 2024, 12:17 PM ET

STAMFORD, Conn. — The Kentucky Derby will remain on NBC through 2032 after the network and Churchill Downs Inc. extended their contract, announcing it hours before the running of the 150th race Saturday.

The race switched to NBC in 2001 after airing on ABC from 1975 to 2000 and CBS from 1952 to 1974. The multiyear extension will make NBC the longest-running home of the race for 3-year-old horses.

The deal includes multiplatform rights to the Kentucky Derby, Kentucky Oaks, and Derby and Oaks day programming, which will be presented on NBC, Peacock, USA Network and additional NBCU platforms.

Politics

Conservative Andy Street’s bid to be re-elected West Midlands mayor ‘too close to call’

Published

51 mins ago

May 4, 2024

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Conservative Andy Street's bid to be re-elected West Midlands mayor 'too close to call'

The battle for West Midlands mayor is down to the wire after a partial recount of votes was ordered.

Incumbent Tory Andy Street’s hope of securing a third term in office remains on a knife-edge in the face of a stiff challenge by Labour’s Richard Parker.

The outcome of the contest is critical to Rishi Sunak after a hammering in the local elections, which saw the Conservative Party lose more than half of its councillors who stood for re-election across England.

Local elections live

It threatens to ramp back up the pressure on the prime minister, who was hoping for a repeat of the success enjoyed by Conservative Ben Houchen who held on as the mayor of Tees Valley and to dampen rumblings of rebellion among some Tory MPs.

Former Scottish Conservative leader Ruth Davidson in the Electoral Dysfunction podcast said the rebels who want to move against Mr Sunak and change leader “would have a huge amount of fuel” if the party lost “one or other or both of Teeside and West Midlands”.

Mr Street had sought to distance himself from the Conservative brand during his campaign and instead ran on a personal platform.

Sky News recently revealed Mr Street was sending out election literature with an endorsement from former prime minister Boris Johnson which urged people to “forget about the government”.

His campaign website also made no mention of Mr Sunak on its homepage and was coloured in green rather than Conservative blue.

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