Food costs hit highest inflation in 40 years
Inflation eased last monthbut Americans see no easing in grocery stores. Gasoline prices drop. However, household spending on food bucked the trend, rising at a faster pace in July than the previous month.
According to a recent survey in New York Life, Americans said their daily expenses, such as food and gas, were their top concerns. I'm here. His one way people are coping is by leveraging their savings. Grocery-buying habits are also changing, with consumers switching to cheaper brands at supermarkets, according to Global Data managing director Neil Saunders.
"[T]The bad news is that while some categories, such as gas, are experiencing price declines, other A key area of the economy is rising inflation," he wrote in this week's research note.
's behavior continues to move in an unfavorable direction," he added.
He also cited a consumer survey of about 2,800 people conducted in the last week of July, noting that Americans are shopping less and hunting for bargains.
Biggest Rise: Eggs and Cereals
July food price gains represent his seventh straight month of gains of at least 0.9%, says Labor Department said Wednesday. Food at home, or meals prepared from grocery purchases, rose 1.3% last month, with prices jumping across all categories at major grocery stores, according to the government. Eggs were the rising food item, up 38% year-over-year in July. However, he saw double-digit increases in many other foods, including a 20% increase in coffee, butter (22%) and flour (23%). Government data shows.
Grocery shoppers are searching the aisles for bargains and cheaper branded items, cutting back on non-essential categories to save money. For example, a GlobalData survey found that 6 of her 10 consumers are avoiding non-grocery purchases, and half are avoiding driving to save money on gas.
"Certainly none of these changes signal an imminent collapse in spending," Sanders said. "Overall, the consumer economy remains strong, but there are signs that it is fraying across the board, especially in non-critical categories."
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