Employees returning to the office after a two-year stay at home due to the pandemic were shocked to find how expensive their lunches have become.
As of March 1, the average price of rolls is up 18%, sandwiches are up 14%, salads are up 11% and hamburgers are up 8%, according to the Wall Street Journal, citing data from payment company Square.
Menu prices have generally risen by the most since 1981, with prices skyrocketing in major cities including San Francisco, Seattle, New York, Washington, DC, and Austin, Texas.
Before the pandemic, Edison Gomez bought $8 burritos almost every day from a store across the street from his office. That burrito is now costing him $12 with taxes.
The 33-year-old medical translator told the WSJ that the extra $4 — on top of the rising price of gas to pay for his nearly two-hour round trip — is taking away a much larger portion of his earnings compared to his remote work. work routine.
“I spend at least $20 more a day than when I was at home, and eating out is becoming unbearable,” he said.
Inflation is likely to rise even higher next month as the impact of the sharp rise in fuel prices is factored in.
The Labor Department said in early March that the CPI rose 0.8% in February from the previous month, up 7.9% from a year ago.
As of March 1, the average price of rolls is up 18%, sandwiches are up 14%, salads are up 11% and hamburgers are up 8%, according to the Wall Street Journal, citing payment company Square.
US inflation hit a new 40-year high of 7.9% in February, another bleak signal for consumers.
A shopper shopping at a grocery store last month in Miami. Food prices rose by 8.6% compared to last year.
Camilia Bing, 31, who lives in Maryland, told the WSJ she doesn’t want to give up telecommuting because she doesn’t want to go back to filling up her car every week or making sure she has the money. buy groceries at work.
She noted that commodity prices are rising, but wages are not.
“So we ended up in this place of panic. Like, “What do we do? How do we deal with it? How can we stretch this dollar? ‘ she said. “You stretch it and it turns into 50 cents.”
In the two years since the pandemic began in March 2020, the cost of bandages has risen from $9.05 to $10.21 based on a 28-day moving average. Over the same period, the average price of hamburgers rose from $10.15 to $11.10 and sandwiches from $9.40 to $10.77, Square said.
Lettuce chain Sweetgreen said it raised menu prices by 6 percent in January. But he added that this is a restart of the delivery service for office buildings.
Food prices have risen sharply compared to last year: meat has risen in price by 14%, flour – by 11.6%, and eggs – by 11.4%. Above: A worker in New York eats a takeaway lunch.
Sandwich chain Potbelly hiked prices 5.4% in February, CEO Bob Wright said, reporting an 86% increase from fall 2020.
“Like most businesses, we have had to deal with the rising cost of our core resources: food and labor,” Wright told the WSJ.
Mark Davis, a 30-year-old Chicago sales rep, told the WSJ that he spends about $50 more every day on food and travel than he does when he works remotely.
“But whether it’s because of the commute to work, having to carry an extra bag, putting it in the fridge on the floor, and because of all the extra steps, I don’t like to bring food,” he said, adding that what was once a $9 sandwich from a local sandwich chain now $15 or $16. “What should I do, don’t eat?”
Many workers are facing other cuts to their earnings due to inflation, which is likely to rise even higher next month as the impact of the sharp rise in fuel prices is taken into account.
The soaring cost of living is likely to create problems for Biden in mid-November, prompting statements from the president accusing Russia of distraction tactics.
The Labor Department reported last week that the consumer price index rose 0.8% in February from the previous month, up 7.9% from a year ago.
This is the largest annual increase since June 1982. Excluding volatile food and energy products, prices rose 6.4 percent, the biggest change in the 12 months since the period ending August 1982.
The latest data showed that the prices of basic necessities rose sharply: groceries rose by 8.6% compared to last year, housing – by 4.7%, clothing – by 6.6%, and electricity – by 25.6% .
Much of the inflationary impact of the Russian invasion of Ukraine was not reflected in the February CPI, which does not capture the effects of the surge in oil and commodity prices in early March.
The price of gasoline set new all-time highs for three consecutive days in early March, hitting the national average of $4.32, but that rise will not materialize until after March inflation data is released.
For most Americans, inflation is far outpacing last year’s pay raises, making it increasingly difficult for them to afford basic necessities like food, gas and rent.
As a consequence, inflation has become a major political threat to Biden and Congressional Democrats as the crucial midterm elections approach. Small business owners now say in polls that this is also their top economic concern.
In a statement, Biden signaled a strong recovery in the labor market, with the latest jobless data showing that the jobless claims rate has returned to the pre-pandemic average.
“At the same time, today’s inflation report is a reminder that Americans’ budgets are being drained by price increases, and families are beginning to feel the effects of Putin’s price increases,” he added.
“I know that higher prices take a toll on household budgets, which is why I am fighting to bring down the everyday prices that Americans are suffering from,” Biden said.
Gasoline prices are displayed at a gas station in Long Beach, California on Wednesday. The average price of gasoline in the country on Thursday set a new all-time high, reaching $4.32 per gallon.
Biden touted his move to release 60 million barrels of oil from strategic reserves, although the move did nothing to lower crude oil prices. He has also touted his initiative to make goods in America, which he claims will drive prices down.
While Biden insists his policies aren’t to blame for the price surge, Republican critics have been quick to point fingers at his administration and Congressional Democrats.
“As expected, the reckless spending of money in Washington has sent inflation to another 40-year high,” House GOP leader Kevin McCarthy wrote on Thursday.
“No one buys into the Democrats’ desperate excuses for inflation, but everyone pays for them,” he added.
Wall Street’s major indexes opened lower on Thursday after new inflation data came out that bolstered the case for a Federal Reserve rate hike later this month.
For more than a year, inflation has far exceeded the Fed’s annual target of 2 percent. The US central bank is expected to start raising interest rates next Wednesday to tamp down inflation, with economists expecting as many as seven rate hikes this year.
However, the Fed faces a delicate task: if it tightens credit too aggressively this year, it could undermine the economy and possibly trigger a recession.
For now, solid consumer spending, fueled in part by the further reopening of the economy as Omicron fades, in addition to higher wages and more expensive gas, is likely to drive up inflation within a few months.
Oil prices fell on Wednesday after reports that the United Arab Emirates will urge other members of OPEC to increase production. US oil fell 12 percent to $108.70 a barrel, though still sharply up from around $90 before the Russian invasion.
However, energy markets have been so volatile that it is impossible to know if the decline will continue. Analysts estimate that if Europe joins the US and UK in banning Russian oil imports, prices could soar to $160 a barrel.
The average gas price in the country on Wednesday reached $4,252, setting an absolute record for the second day in a row.