The cost of food is more expensive than it has been in decades

Dec 11, 2021

The cost of food is more expensive than it has been in decades

Dec 11, 2021

Bad news for American consumers: It’s getting more expensive to dine out, and it’s getting more expensive to eat at home. Restaurant prices spiked 5.8% over the 12 months ending in November without seasonal adjustments, the Bureau of Labor Statistics said Friday.

That’s the largest 12-month increase since the year ended January 1982. And unfortunately for those hoping to curb spending by turning to home cooking, grocery prices are also at record highs: They jumped 6.4%, the largest 12-month increase since December 2008.

Beef had the most dramatic increase with a 20.9% spike in prices. The sharp increases underscore the fact that restaurants and food makers are not immune to supply chain and labor pressures contributing to pricing increases across the board. Yet they’ve found customers are willing to spend more.


Advertisement


In fact, restaurants have been raising prices as their own food and labor costs rise, and so far, they say, consumers have accepted the hikes. McDonald’s (MCD) said in October that it expects menu prices to be about 6% higher this year compared to last.

The increase “has been pretty well received by customers,” CEO Chris Kempczinski said during an October analyst call. Chipotle also raised prices this year, yet it has seen its same-store restaurant sales grow.

Beyond restaurants, food manufacturers and grocers have faced higher costs for commodities, labor and transportation. Those costs have escalated further in recent months, leading manufacturers to pass some of them on to their retail customers — who in turn charge consumers a portion of those increases. READ MORE

About the Author

End Time Headlines is a ministry founded, owned, and operated by Ricky Scaparo, established in 2010 to equip believers and inform discerning individuals about the “Signs and Seasons” of the times in which we live. Ricky authors original articles and curates news from mainstream sources, carefully selecting topics, verifying information, and utilizing artificial intelligence tools to ensure content is both timely and accurate. Every piece is personally reviewed and edited by Ricky to align with the ministry’s mission of providing a prophetic perspective on current events.

Advertisement

CATEGORIES