(NewsNation) — Amid inflation and growing fears of a potential recession, federal data reveals that Americans are spending more on food than they have in over 30 years.
Consumers in the U.S. are spending 11% of their disposable income on food — the highest it has been since 1991, The Wall Street Journal reported.
Although price growth has receded considerably in the past year, inflation remains above the Federal Reserve’s 2% target. Plus, companies have raised the costs of goods to meet inflation rates.
Price gouging has been most evident with food and now, consumers are pushing back. Inflation is changing the way Americans shop. Consumers are fed up with prices that remain about 19%, on average, above where they were before the pandemic.
Now, consumers are turning to private label options to save money. They are also switching to discount stores or simply buying fewer items like snacks or gourmet foods.
“I’ve been trying private label options, and the quality is the same and it’s almost a no-brainer to switch from the products I used to buy a ton of to just the private label,” Stuart Dryden, a commercial underwriter at a bank who lives in Arlington, Virginia, told the Associated Press.
High food costs could help explain why consumers feel worse about the economy, Axios reported. The Conference Board, a business research group, said Americans were slightly less worried about food and gas prices last month, despite prices actually increasing again in January.
And relief isn’t anywhere in sight for consumers as food companies and restaurants claim they are still faced with rising labor costs and increased prices for ingredients, WSJ reported.
The Associated Press contributed to this report.
