Rising grocery prices stretch budgets even more
The cost of groceries has been rising at the fastest pace in decades since the coronavirus pandemic seized the U.S. economy, leading to sticker shock for basic staples such as beef and eggs and forcing struggling households to rethink how to put enough food on the table.
Long-standing supply chains for everyday grocery items have been upended as the pandemic sickened scores of workers, forced factory closures and punctured the carefully calibrated networks that brought food from farms to store shelves. Even while some of the sharpest price hikes have eased somewhat, the overall effects are being felt most acutely by the nearly 30 million Americans who saw their $600 enhanced unemployment benefit expire last Friday — exacerbating concerns that the recession’s long tail could worsen food insecurity for years to come.
Overall inflation has not been a pressing concern since the recession touched down in February. Last week, Federal Reserve Chair Jerome H. Powell said consumer prices have been kept in check due to weak demand, especially in sectors such as travel and hospitality that have been most affected by the pandemic. But food prices are the exception.
“For some goods, including food, supply constraints have led to notably higher prices, adding to the burden for those struggling with lost income,” Powell noted.
https://www.msn.com/en-us/money/personalfinance/for-the-unemployed-rising-grocery-prices-stretch-budgets-even-more/ar-BB17z6H8
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