The dollar isn’t going as far as it once did for American households – and the trend is likely to continue well into 2022. Data released in early December indicated that the Consumer Price Index (CPI), a key measure of inflation, had spiked 6.8 percent for the year through November, marking its fastest climb since 1982. Even the core CPI, which excludes more volatile food and energy components, had increased 4.9 percent. While consumer wages have climbed during this period as well, they haven’t increased enough to keep pace with inflation.
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Meanwhile, restaurant operators have had to pass more of their expenses on to consumers. Econofact reports that food prices have risen at a faster average rate since the start of the pandemic than they did over the previous decade. Specifically, food prices have climbed an average 3.6 percent for store-bought food and 3.9 percent for food purchased away from home on a monthly, year-over-year basis.
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