Seeking Alpha
Macro, economy, Professor
Profile| Send Message|
( followers)

(click to enlarge)Related to my earlier post today on food inflation, the chart above shows that the share of consumption expenditures on food at home for Americans hasn't changed in the last decade, as has remained remarkably constant at about 7.7%. In fact, it was slightly lower last year at 7.68% than in any year since 2007, when it was 7.56%. If we really were experiencing the high levels of food inflation that many claim we are, shouldn't we be seeing an upward trend in this data series, and not a slight decline? And for those who wax nostalgic about the "golden age of the middle class" in the 1950s, consider that spending on food as a share of consumer expenditures was nearly three times higher then - more than 22% in the early 1950s - than today at 7.68%.