Despite the “Mission Accomplished” celebration this week in which Democrats partied on the White House lawn while the stock market took a dive, there hasn’t been any real progress in slowing the rate of inflation.
The price of a gallon of gasoline has come down a bit in the past two months but still sits much higher than it was when Biden took office. The price of food, however, and other household staples have continued rising at staggering rates meaning that while consumers get relief on one end, they continue getting pinched on the other.
As CNBC explains, the average household budget is still looking for the “win” in this case but keeps getting hammered on several fronts:
Going to the grocery store isn’t getting any cheaper.
Rising food costs helped push inflation higher again last month, despite a drop in gas prices. The food index alone rose 11.4% over the past year, according to the latest consumer price index figures — marking the biggest 12-month jump since May 1979.
The food-at-home index, a measure of price changes at the grocery store, increased 13.5% — also a 43-year high.
In the face of higher prices, consumers have been cutting back, according to Mark Hamrick, a senior economic analyst at Bankrate.com. However, “food, at its basic level, is not discretionary,” he said. “That’s the challenging aspect of the circumstances we are in.”
rices for staples like eggs, milk, cereal, bread and butter notched some of the largest increases, further straining household budgets.
Some of the price hikes are obvious, such as when shopping for a dozen eggs. Other prices are being concealed with “shrinkflation,” the approach some companies take by keeping the price the same but making the packages smaller. Instead of getting 8 ounces of shredded cheese, you’ll get 6 ounces but the bag still costs $2.99.
The White House is doing a full court press to bury the bad news and emphasize the news it’s trying to create about the “Inflation Reduction Act” doing something to the economy. The problem is that once you look past the veneer, there’s no “there” there.
Prices are still going up, food is getting more and more expensive and Biden is doing a tour talking about tax credits for electric vehicles. The average electric vehicle costs $66,000, a price far beyond many budgets, especially for houses in need of larger vehicles or in need of longer travel ranges. The disconnect between Biden’s reality in his head and the one he created seems like a Grand Canyon of distance.
As part of the story, CNBC put together a list of five ways to save on food costs. The list seems reminiscent of the “inflate your tires” advice put out during the Obama years for people trying to save a penny on soaring gas prices:
- Scrutinize sales
- Plan your meals
- Buy in bulk
- Use a cash-back app
- Pay with the right card
So, in essence, look at the sale ad, plan slightly in advance, buy in bulk (which costs more upfront), use a cash-back app to get a nickel discount, and earn extra reward points by using the right credit card.
Most of the items on this list are common sense things most households do anyway. In fact, many households are forced to do them to plan and stay within budget.
It’s not rocket science, it’s a failed president who still hasn’t taken the problem seriously after ignoring it for way too long despite warnings.
