Data: Families Paying More Disposable Income For Groceries, Dining Out
February 29, 2024
Nik Rajkovic / news@whmi.com
Kellogg's CEO drew fire on social media this week, after suggesting that struggling American families eat cereal for dinner. The USDA says Americans are spending more disposable income on groceries and dining out than they have in 30 years.
"For families, no question, it's a much bigger item now than it ever was for me and my compatriots. Feeding a family, as long as you were smart, was reasonably inexpensive," said one older shopper at the Meijer in Genoa Township.
By the end of 2023, consumers were paying nearly 20% more for the same basket of groceries as they were in 2021, according to the latest data from the Consumer Price Index.
"Rising food costs have escalated significantly in comparison to anybody's wages," another woman suggested. "I definitely think it has hit everybody, whether you have kids or not."
Another young mother said her family has adjusted where and how they dine out or shop for groceries.
"We've definitely stopped eating out more. We try to only eat out once a week. We plan our meals on Sundays and go grocery shopping, look at the ads to see what's on sale."
Restaurant and food companies point to their labor costs as a key factor driving up prices, with 22 states -- including Michigan -- raising their minimum wages in January.