Inflationary hangover persisting for US consumers

Despite annual inflation recently receding to its lowest level since February 2021 and wage increases outpacing inflation, US consumers in the low- to middle-income brackets are struggling to cover essentials, including groceries. Essentials account for a larger share of low- and middle-income consumers’ budgets, impacting their discretionary spending on food at home as well as dining out. While rising prices have moderated, they are not declining, and consumers are paying higher prices for meat and poultry products. The average price per pound in the meat department across all cuts and kinds, both fixed and random weight, stood at $4.67 in October 2024, up 1.9% year on year and up 11.5% from October 2021, according to Circana retail data analysis. “Shoppers tell us that they remain concerned over inflation, with 62% saying they are extremely concerned,” said Melissa Myres, director, insights, at market research firm 84.51°. Myres said the top three ways consumers are stretching ...