Unprecedented inflation in America and $10 bread
Mark Cohen, head of retail studies at Columbia University, told Bloomberg: These prices are a blow to consumers. No one has seen the price of 10 dollars for a loaf of bread in the past and its effect is like 5 dollars gasoline.
The big question for the American economy is how long will consumer demand continue amidst this high inflation? When shoppers are concerned about their financial situation, they traditionally cut back on unnecessary spending.
But the decline in demand is spreading to basic goods. American shoppers do not enter the bread section in stores. Meanwhile, according to the Nielsen EQ report, from the beginning of this year to July 2nd, the purchase of bread in American stores has decreased by 2.7% compared to the same period last year.
On the other hand, data shows that Americans buy less milk and eggs compared to last year. Of course, part of this decrease in purchases is due to the increase of Americans visiting restaurants.
Two major manufacturers of packaged foods in the United States announced last week that they are facing a decline in demand. In Pepsi company, the price increase has affected the production volume. Kongra Brands, which produces ketchup and other food products, has announced that it plans to continue raising prices. However, this company added that the increase in prices caused a 6% decrease in production units.
Now the 50 billion dollar bread production industry in America is facing the risk of changing the taste of American consumers due to the high price of the products.
The price of one pound (about 460 grams) of white bread in the United States reached a record $1.69 in June, which has increased by 12% compared to last year. Meanwhile, wheat bread has also reached its highest price in the history of the United States, which is 2.22 dollars per pound (about 460 grams).
Previously, the website of the CNN news network wrote in a commentary: High inflation is what makes US President Joe Biden unable to maintain his presidency.
According to IRNA’s report on Tuesday, CNN’s commentary report states: The famous American political commentator James Carville’s advertising slogan in the 1992 election about the economy needing to be updated shows the depth of Biden’s political problems and tells of It has to what extent the hope of the current American president to get out of this problem depends on factors that are outside of his authority.
A new CNN poll released on Monday shows that 75 percent of Americans consider inflation to be their top economic concern, and only 25 percent of them approve of Biden’s efforts to control inflation.
It marks Biden’s denial of something that has put an extraordinary strain on American families, and the statistics will be a major issue in November’s midterm congressional elections.
This article adds: The statistics also help explain why inflation, as an issue that affects voter opinion even more than job losses during an economic recession, is a worldwide concern for officials. It is an election.
The decline in confidence in the Biden presidency could reflect his administration’s confidence last year that inflation is no longer his administration’s long-term concern; An issue that is in conflict with the opinion of experts such as “Larry Summers”, the former secretary of the Treasury of the Democratic Party.