Wednesday, September 1, 2021

Bidenflation is Here to Stay; Inflation Hits Highest Since 1974 in Philly Fed Manufacturing Survey as Growth Unexpectedly Slows

AP Photo/Susan Walsh
Bideninflation is here to stay
Yes, you're paying more at McDonald's, Chipotle, and Dunkin' Donuts
When President Donald J. Trump left office, the average price for a large French fry at McDonald’s was $1.89. A double quarter pounder with cheese cost $4.79, a Big Mac $3.99, Filet O Fish $3.79.
As millions of Americans who frequent the fast-food chain today have probably recognized, their bill is much higher. A large French fry averages $3.89 – a whopping 106% increase from just a year ago. A double quarter pounder with cheese is now $6.79, a Big Mac $5.59, Filet O Fish $5.29 – all about $2 higher than 2020.
McDonald’s is not the only fast-food chain raising prices. Chipotle implemented a 4% price increase across its menu in June. Taco Bell’s food now costs consumers 10% more, the cost of donuts and coffee at Dunkin’ Donuts has spiked 8%, according to a Gordon Haskett analysis, which evaluated 24 restaurant chains over the span of a year. The analysis found quick-service restaurants made the largest price increases, averaging 6%, and most were implemented in March. Exact prices vary by market and franchise.
As much as the Biden administration would like to deny it, inflation is here, it’s real, and it’s hitting blue-collar workers the hardest.
Many of these restaurant chains blame rising labor costs in their decision to increase prices. There’s a labor shortage, as many Americans are simply making more money sitting on the sidelines receiving state and federal unemployment checks than working. Chipotle caved to Mr. Biden’s calls for employers to pay a “living wage,” increasing hourly wages to $15, and as a result, it’s charging its customers 30 to 40 cents more for an average meal.
What good are higher wages if it costs you more to buy essential goods, like food? --->READ MORE HERE
AP Photo/Evan Vucci
Inflation Hits Highest Since 1974 in Philly Fed Manufacturing Survey as Growth Unexpectedly Slows:
Inflation signals climbed in August even while the pace of growth in manufacturing unexpectedly slowed in August, according to a survey from the Federal Reserve Bank of Philadelphia.
The Philadelphia Fed’s survey of manufacturers showed the current activity index slipping from 21.9 to 19.4 in August, the regional Fed bank said Thursday.
Economists had forecast an increase in the index to 25.
Yet the slowdown in the pace of growth did not slow down price increases. To the contrary, the price indexes climbed in August.
The index of current prices received by manufacturers for their products increased 7 points to 53.9, its highest reading since May 1974. The index for prices paid for components and materials edged up 2 points to 71.2, after dropping 10 points last month from June’s 42-year high. --->READ MORE HERE

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