Americans are spending more of their income on food, both at home and in restaurants, than they have in 30 years, reports CBS News. USDA data confirms U.S. consumers spent more than 11 percent of disposable income on eating in 2022, the highest percentage since 1991.
"This is really a metric that's about the share of our disposable personal income which the USDA tracks, and which recently was at essentially a 31-year high," said Wall Street Journal food reporter Jesse Newman in the report.
Before 2022, the percentage of income people spent on food in the U.S. had been gradually declining. As pandemic lockdown rules eased, food prices began to climb: latest consumer price index data found that restaurant prices in January rose 5.1 percent from a year ago and by the end of 2023, and consumers were paying almost 20 percent more for the same basket of groceries as in 2021.
"Consumers are telling us that they're starting to do things like forgo treats when they go out to eat. So they'll share a meal, or they won't buy booze, or they won't buy dessert. So it's an uphill battle," Newman said.
Restaurants and food companies cite labor costs as a primary factor in the price increases.
"For restaurants in particular, they're dealing with minimum wage increases across the country," said Newman. Full Story