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

Published

1 year ago

February 23, 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%.

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UK

UK among 19 nations taking part in Australia’s largest war exercise – as China expected to watch

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1 second ago

July 14, 2025

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A military exercise bringing together more than 35,000 personnel across 19 different nations, including the UK, is under way in Australia – with Chinese spy ships expected to watch.

The drill – the largest-ever war fighting exercise to take place in Australia – officially started on Sunday with a ceremony in Sydney.

The biennial drill, known as Exercise Talisman Sabre, started in 2005 as a joint exercise between the US and Australia.

This year, personnel from Canada, Fiji, France, Germany, India, Indonesia, Japan, the Netherlands, New Zealand, Norway, Papua New Guinea, the Philippines, South Korea, Singapore, Thailand, Tonga, and the United Kingdom have joined.

The Ministry of Defence said the UK Carrier Strike Group, including HMS Prince of Wales and HMS Richmond, would be training with forces from New Zealand, among others, ahead of the exercise.

“F-35B jets and Merlin helicopters, part of a wider multinational force, are ready to defend and deepen ties across the Indo-Pacific under Operation Highmast,” said a post on the MoD’s X account.

This morning, the Carrier Strike Group (CSG) said on its own X account: “Exercise #TalismanSabre25 begins! UK #CSG25 is excited to join with 18 partner nations and over 35,000 military personnel for the largest iteration of the exercise in its history.”

The 19 countries will take part in the exercise over three weeks, Australia’s defence department said on Sunday, with China expected to monitor activities.

The drills will also take place in neighbouring Papua New Guinea, making it the first time Talisman Sabre activities have been held outside Australia.

Chinese ships have monitored naval exercises off the Australian coast during the last four Talisman Sabre exercises and were expected to carry out surveillance on the current exercise, Australian defence industry minister Pat Conroy said.

“The Chinese military have observed these exercises since 2017. It’d be very unusual for them not to observe it,” Mr Conroy told the Australian Broadcasting Corp.

“We’ll adjust accordingly. We’ll obviously observe their activities and monitor their presence around Australia, but we’ll also adjust how we conduct those exercises,” he added.

Mr Conroy said the Chinese were not yet shadowing ships as of Sunday.

The drill started a day after Australian Prime Minister Anthony Albanese began a six-day visit to China, where he is expected to hold his fourth face-to-face meeting with Chinese President Xi Jinping in Beijing on Tuesday.

Mr Albanese said Chinese surveillance of Talisman Sabre would not be an issue raised with Mr Xi.

“That would be nothing unusual. That has happened in the past and I’ll continue to assert Australia’s national interest, as I do,” Mr Albanese said in Shanghai on Monday.

Politics

Comeback kid: Rachel Reeves’s revival plan

Published

3 hours ago

July 14, 2025

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Comeback kid: Rachel Reeves's revival plan

👉Listen to Politics At Sam And Anne’s on your podcast app👈

The chancellor is back out on the road to start the government’s re-launch week, ahead of the parliamentary recess.

In today’s episode, Sky News’ Sam Coates and Politico’s Anne McElvoy explain how comments on a proposed wealth tax by Rachel Reeves’s cabinet colleagues may have already put her in a tricky situation.

Elsewhere, Buckingham Palace has confirmed that Windsor Castle will host US President Donald Trump for a second unprecedented state visit in September.

UK

Southend Airport remains closed after ‘fireball’ plane crash

Published

3 hours ago

July 14, 2025

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Southend Airport remains closed after 'fireball' plane crash

Southend Airport has been closed until further notice after a small plane crashed – as video footage emerged showing the aftermath of a huge fireball.

Images posted online showed large flames and a cloud of black smoke following the incident on Sunday afternoon.

Essex Police said it responded to “reports of a collision involving one 12-metre plane” shortly before 4pm.

“We are working with all emergency services at the scene now and that work will be ongoing for several hours,” the statement said.

“We would please ask the public to avoid this area where possible while this work continues.”

Southend Airport said it would be “closed until further notice” due to the “serious incident”.

“We ask that any passengers due to travel (on Monday) via London Southend Airport contact their airline for information and advice,” it added.

Zeusch Aviation, based at Lelystad Airport in the Netherlands, confirmed its SUZ1 flight had been “involved in an accident” at the airport and its thoughts were with “everyone who has been affected”.

It has been reported that the plane involved in the incident is a Beech B200 Super King Air.

According to flight-tracking service Flightradar, it took off at 3.48pm and was bound for Lelystad, a city in the Netherlands.

Pilots ‘waved’ to families watching planes

One man, who was at the airport with his wife and children, told Sky News the plane crashed within seconds of taking off.

John Johnson said the pilots “waved” at his family as they taxied the aircraft.

“We all waved [back] at them,” he continued. “They carried on taxiing to their take-off point and turned around.

“Then they throttled up the engines and passed by us. The aircraft took off and within a few seconds it had a steep bank angle to its left.”

The aircraft then “almost seemed to invert and unfortunately crashed,” he said. “There was a large fireball.”

‘Airport was in lockdown’

Wren Stranix, 16, from Woodbridge in Suffolk, was in another aircraft waiting to take off for Newquay, Cornwall, with her family and boyfriend when the plane came down.

They watched from their aircraft as the emergency services arrived and were not able to leave their seats.

“The flight attendant didn’t know what was going on,” she told Sky News. “They said the plane had exploded and they didn’t know if it was safe or not. The airport was in lockdown.”

They were eventually allowed back in the terminal to wait before all flights were cancelled.

Southend Airport said the incident involved “a general aviation aircraft”.

After the incident, EasyJet – one of just a few airlines that uses the airport – said all of its remaining flights to and from Southend had been “diverted to alternative airports or are no longer able to operate”.

The airline said it has contacted customers who were due to travel on Sunday. Anyone due to fly on Monday should check online for up-to-date information, it added.

Essex County Fire and Rescue Service said four crews, along with off-road vehicles, have attended the scene.

The East of England Ambulance Service said four ambulances, four hazardous area response team vehicles and an air ambulance had been sent to the incident.

David Burton-Sampson, the MP for Southend West and Leigh, asked people to keep away from the area and “allow the emergency services to do their work” in a post on social media.

Transport Secretary Heidi Alexander said she was “monitoring the situation closely and receiving regular updates”.

Essex Police have set up a dedicated public portal and phone line where people can contact them about the crash at https://esxpol.uk/LIbaz and on 0800 0961011.

Chief Superintendent Morgan Cronin said: “In these very early stages it is vital we gather the information we need, and continue supporting the people of Essex.”

He added: “We are working closely with all at the scene, as well as the Air Accident Investigation Branch, to establish what has happened today and why.”