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Published January 14, 2024, 12:49 PM ET
Americans are angry because they continue to be weighed down by high grocery bills even as inflation nears pre-COVID-19 levels, according to a new survey.
The most recent Axio Vibe Check survey of 2,120 adults in December found that about 72% of respondents thought grocery inflation was still hitting hard.
Nearly 60 percent also said they feel anger, anxiety and resignation every time they shop for groceries as they struggle to stay on budget.
The negative sentiment in the grocery business comes as food prices remain stubbornly high even as inflation has fallen sharply since hitting a four-decade high of 9.1% last summer.
Currently at just 3.4%, inflation is approaching the Federal Reserve's target of 2%, but not all prices are falling equally.
The Bureau of Labor Statistics (BLS) found that food costs were still rising in December, with grains and baked goods rising 2.6% and fruits and vegetables rising 0.3% since last year.
Food price inflation in America rose to 13.5% in August 2022. US Bureau of Labor Statistics
The price of eggs has also increased by 8.9% since November, due not only to inflation but also to the impact of bird flu, which is once again ravaging the industry.
Overall, the “food prices at home” category rose 1.3% in 2023, a seemingly small number but one that comes after years of high costs and a peak of 13.5% in August.
That means Americans who spent $100 on their grocery bills in 2019 would spend about $125.51 on the same amount of groceries in December, according to the BLS.
Although prices have fallen since their peak last year, they remain stubbornly high, with the cost of grain rising 2.6% in December. Getty Images Overall, Americans are spending an estimated 21% more on their grocery bills compared to pre-pandemic levels. Getty Images
This shows that Americans are still spending more than 21% on their grocery bills than before the pandemic, a clear indication that inflation remains a sensitive issue for most consumers, according to the Axio survey.
Perhaps some of the anger also stems from the fact that food prices collapsed after the 2022 highs, reaching more normal levels in the spring of 2023 before rising again in the fall.
While there remains hope that inflation will fall to pre-pandemic levels, this decline is unlikely to occur quickly as the consumer price index remains volatile.
The vast majority of Americans reported feeling angry and anxious when they went shopping. Tada Images – stock.adobe.com
Although inflation is relatively low at 3.4%, it is actually up from November's 3.1% and higher than the 3.2% predicted by economists.
Despite the forecast bumpy road ahead, Bill Adams, chief economist at Comerica Bank, said the latest BLS consumer price index report showed inflation will likely continue to ease in 2024.
“The overall picture is that the economic dislocation caused by the pandemic is easing, economic growth is settling to a more normal pace, and labor shortages are becoming much less of an issue, helping to bring inflation back to normal,” Adams wrote in his overview about the BLS report.
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