Back to posts

A Red Herring

June 10, 2024 | Posted in: Insights

Many stories in the media discuss the pain and anger felt by many Americans as a result of the burst of inflation that we have experienced over the past couple of years. I do not doubt that many people have suffered from serious financial pressures, but the following graphic from Statista paints a somewhat different picture.

Note that sales of food and drinking establishments are up 36% since February of 2020 while inflation in those items equaled 26%. So, volume has actually increased during a difficult and volatile time, and it appears that sales are back on their long-term trend. It could be that people are scrimping on their spending in other areas but it certainly does not appear that Americans have allowed inflation to diminish a key component of their lifestyles.