Why do the “official” numbers on food inflation state it’s gone up by tiny amounts like 8%, 19%, 11%, etc. but most of the foods I see has gone up by a minimum of 50%, 100%, 80%?
In: Economics
I have observed that items experiencing the heaviest inflation are convenience foods or popular foods–things that people are very attached to and/or have cravings for. Prices may have originally gone up due to supply chain shortages, but they haven’t gone down because people are still willing to buy them. Meanwhile, I have found that produce prices haven’t changed as much, nor have some raw meats that you have to cook yourself. e.g., I seem to recall onions being ~$0.89-0.99/lb before the pandemic, and now they’re ~$0.99-1.19/lb. Or whole chicken I used to be able to buy for $8, and now I spend $10.
I would suggest being flexible with what you buy, and be more diligent with price comparisons. If I’m careful, I can still get a week’s worth of groceries for $35-40 (or less, if I really really tried). It’s when I’m not careful that I suddenly find myself walking out of the store having spent $80-100.
Is food up 50% from the price last year? Or is it up 50% from the price a few years ago?
If the food you buy went up 10% every year (just as an example), it would now be almost 50% more than it cost back in 2020. But food inflation would never have exceeded 10%.
I went through the top comments and I’m surprised that no one has mentioned a big part of this.
Food inflation is calculated not on a fixed set of goods, but goods can be switched in and out. What’s happened in the last few years according to some analysts is swapping for *cheaper* options (e.g. store brand vs name brand) has lowered the overall reported numbers.
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