Food Hasn’t Impacted Your Budget This Much in Decades
By: Anneken Tappe · February 22, 2024 · Reading Time: 2 minutes
Historically High Prices
The post-pandemic inflation peak we all just lived through has left its mark on American wallets. Even though the pace of price hikes has moderated, there’s one particular area of spending that is eating up a lot of your budget… excuse the pun.
In 2022, Americans spent more than 11% of their disposable income on food, according to the USDA. The last time the share of food spending was this large was about 30 years ago, in 1991.
Shrinkflation
Even if sticker prices haven’t risen as much in your area, you may be getting less bang for your buck, thanks to shrinkflation. In this phenomenon, portion and packaging sizes are reduced while the price stays unchanged.
Shrinkflation has become so prevalent that even President Joe Biden called out America’s largest food makers.
Many food companies have pointed to higher wholesale costs for things like sugar and beef to defend the climbing cost of their products. Minimum wage has also ticked higher in many states, which added to the costs for companies, which they may pass onto consumers.
Food price hikes tend to be sticky, which could mean that the share of your income spent on food will stay elevated for a while.
Read more reporting here .
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS24022202