Business Will food prices stop rising? Many companies say yes

Will food prices stop rising? Many companies say yes

Will food prices stop rising?  Many companies say yes

A weekly selection of stories in Spanish that you won’t find anywhere else, with enes and accents.

Few prices are as visible to Americans as those they see at the supermarket or drive-thru window, which is why two years of rapid food inflation have weighed heavily on U.S. households and Joe Biden’s administration.

Shoppers have slowly regained confidence in the state of the economy as they pay more to fill their carts, and President Biden has made a habit of shaming food companies, even filming a video for Super Bowl Sunday in which he criticized food companies. sandwich producers for their ‘rip-off’ prices.

But now, the trend of inflation in supermarkets and restaurants seems to be about to change.

After months of rapid increases, the cost of food at home rose at a noticeably slower pace in January. And from packaged food suppliers to restaurant chains, companies across the food sector report that they are no longer raising prices as sharply. In some cases that has happened because consumers began to reject price increases after years of spending on them. In others, it’s because the prices companies pay for inputs like packaging and labor are no longer rising as steeply.

(The graph below shows the annual change in consumer price indices. The blue line shows the percentage change in food consumed at home and the red line shows the percentage change in food consumed outside the home.)

Even if food inflation stabilizes, that won’t mean grocery bills or restaurant bills will go down: they’ll just stop climbing as quickly. Most companies are planning smaller price increases rather than outright price reductions. However, as to the question of whether rapid jumps in supermarket and restaurant prices are a thing of the past, what managers are telling investors offers a bit of hope.

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Source: NYT Espanol

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