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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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Politics

Labour taking ‘Tory crown jewel’ feels like a momentum shift

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Labour taking 'Tory crown jewel' feels like a momentum shift

It was a wafer-thin victory, but a huge win.

The symbolism of Labour taking the West Midlands mayor, a jewel in the Tory crown, could be felt in the room as Labour activists gathered in Birmingham to celebrate the win with their new mayor Richard Parker and Labour leader Sir Keir Starmer.

There are moments on election journeys when the momentum shifts – and this win felt like one of them.

“We humbly asked [the voters] to put their trust and confidence in a changed Labour Party and they did. And that is a significant piece of political history that we’ve made here today,” said Sir Keir at his victory rally.

“So the message out of these elections, the last now the last stop before we go into that general election, is that the country wants change.

“I hope the prime minister is listening and gives the opportunity to the country to vote as a whole in a general election as soon as possible.”

Labour leader Sir Keir Starmer celebrates with the new West Midlands mayor Richard Parker. Pic: PA / Jacob King
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Labour leader Sir Keir Starmer celebrates with the new West Midlands mayor Richard Parker. Pic: PA / Jacob King

This win gave them the boost that was missing when they won the Blackpool South by-election on a massive 26-point swing, but then failed to pick up the hundreds of council seats they were chasing.

More on Conservatives

This win, on just 1,508 votes or 0.25 per cent of the vote, was a body blow for a Conservative party that believed they could just about cling on. Ben Houchen, the Tees Valley mayor, is now the last Tory standing.

For Labour, then a moment to bookmark.

Andy Street after losing the mayoral race for the West Midlands. Pic: PA / Jacob King
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Andy Street after losing the mayoral race for the West Midlands. Pic: PA / Jacob King

Just as Boris Johnson’s Hartlepool by-election win in 2021 was a low point for Sir Keir – he told me this week that he considered resigning over the loss because he thought it showed he was the barrier to Labour’s recovery – this too will feel devastating not just for Andy Street but for the PM too.

Labour has beaten him in a street fight. He’s bloodied with Sir Keir now emboldened.

“This was the one result we really needed,” said one senior Labour figure. “It’s been our top focus for the past week and symbolically a very important win.”

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Analysis of local election and mayoral results

And Labour needed the boost, because, as Professor Michael Thrasher pointed out in his Sky News’ national vote share projection calculated from the local election results, Sir Keir was not picking up the sort of vote share that Tony Blair was winning in the run-up to the 1997 Labour landslide.

His latest calculation of a 35% vote share for Labour and 26% for the Tories, put Sir Keir winning a general election but short of a majority.

Read more:
Conservative Andy Street suffers shock loss
Charts tell story of Conservative collapse
Analysis: Labour’s future success is less clear-cut

What the West Midlands mayoral win did for Sir Keir was to give him a clear narrative that he is coming for the Tories and will do what he needs to take them down.

It raises inevitable questions about what is next for Rishi Sunak. The prime minister had nowhere to go today, not one win to celebrate. The worst performance in council elections in 40 years, was already pretty much as bad as it gets before the loss of Andy Street. The former Conservative mayor was magnanimous towards the prime minister, saying the loss was his alone.

Defeated Andy Street followed by victor Richard Parker. Pic: PA / Jacob King
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Defeated Andy Street followed by victor Richard Parker. Pic: PA / Jacob King

But colleagues will not be so generous. One former cabinet minister said this loss was “devastating”. “We’re done and there’s no appetite to move against him,” said the senior MP. Many Tories tell me they are now resigned to defeat and believe Mr Sunak and his team needed to own it, rather than the rest of the party.

The coming days might be bumpy, the mood will be stony. But Tories tell me not much will actually change for them.

For Sir Keir, he now needs to sell not the changed Labour Party, but his vision for changing the country. The West Mids mayor’s win was dazzling, but it could have so easily gone the other way. And as Mr Sunak fights to survive, Labour still has to fight hard to win.

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CZ gets jail sentence, Gensler viewed Ether as security, and FBI targets mixers: Hodler’s Digest, April 28 – May 4 

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CZ gets jail sentence, Gensler viewed Ether as security, and FBI targets mixers: Hodler’s Digest, April 28 – May 4 

CZ gets four months in prison, Gary Gensler had Ether as security for at least 1one year, and the FBI targets crypto mixers.

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US Gov’t set to spend $46 million to electrify container ports

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US Gov't set to spend  million to electrify container ports

Multi-million-dollar grants adding up to more than $46 million from the US Federal Highway Administration (FHWA) will help support electrification efforts at several American ports.

The Long Beach Container Terminal (LBCT) in Long Beach, California has received a $34.9 million grant from the FHWA to replace 155 on-site commercial trucks and buses with zero-emission vehicles (ZEV). The grant will fund both the purchase of new electric trucks and the necessary charging infrastructure to support them.

LBCT said the grant dollars will allow it to continue its multi-billion dollar investments in more sustainable logistical operations. “Our vehicle electrification project, coupled with previous investments, enables LBCT to achieve a unique status that is reframing the way the world views sustainable goods movement, enhancing community quality of life and climate change,” said Anthony Otto, CEO of LBCT.

Real progress at Port of Long Beach

Long Beach Container Terminal, photo by LBCT.

Back in 2018, Power Progress reported that the Port of Long Beach had plans to install zero-emissions cranes and cargo handling equipment at its terminals. True to its word, the port has invested more than $2.5 billion to convert its cranes and terminal tractors vehicles to electric equipment. It’s a project that LBCT says has led to an 86 percent (!) reduction in harmful carbon emissions.

“This investment is a huge win for clean air, electrification and the region,” said US House Rep. Robert Garcia. “These federal dollars will make our port cleaner, safer and help us meet our climate goals.”

In a separate announcement, charging infrastructure operator Voltera said that its sites in California and Georgia would receive $11.4 million of the FHWA funding.

Electrek’s Take

No matter what you call it… …yard dog, yard truck, terminal truck, hostler, spotter, shunt truck, yard horse, goat, mule … …Orange EV pure electric trucks deliver.
e-Triever terminal tractor; via Orange EV.

Container ports used to be some of the dirtiest, most heavily polluted areas in the world. That was bad for everyone – but it was especially bad for the people who lived and worked near them. That’s why any positive change is good. Beyond just “positive change,” however, ports today seem to be leading the way when it comes to electric vehicle and hydrogen adoption.

How things change!

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