Lunchflation and shrinkflation hurting workers going back to the office
The return to office life is growing more expensive by the day.
The rising cost of food and soaring inflation is making going back to the office a pain in the wallet.
The index for food away from home has increased 7.4% over the last year, according to a Labor Department report.
Prices for food purchased to eat at home rose 11.9%. According to the Bureau of Labor Statistics that's the biggest 12-month jump since 1979! "It is kind of like a scary feeling because just thinking about what I used to be able to get to come before all of this compared to what I can get now," says deal-hunting mom Darrina Carter.
Meanwhile, Starbucks raised prices in the U.S. earlier this year and said costs could continue to rise.
Since the start of last year, salad chain Sweetgreen raised its menu prices by 10%, according to its recent earnings report.
The budget pinch comes as the Fed is expected to announce another interest rate hike on Wednesday to help tame inflation.
The White House says it is working to bring down those soaring costs. "Make no mistake about it. I understand inflation is a real challenge to American families," says President Joe Biden.
Not only is the cost of eating going up but food and drink companies are quietly shrinking the sizes of some of your favorite products without lower prices.
The Associate Press reports companies are downsizing packages to deal with rising costs for raw materials, labor and transportation.
For example, Chobani Flips Yogurts have shrunk from 5.3 ounces to 4.5 ounces.
Bags of Fritos Scoops marked "party size" used to be 18 ounces are now 15.5 ounces at most retailers.
And Purchased-based PepsiCo is downsizing Gatorade bottles from 32 to 28-ounce bottles. The company says the Gatorade bottle switch has been in the works for years and not related to the current economic conditions.
Meanwhile, Domino's Pizza announced in January it was shrinking the size of its 10-piece chicken wings to eight pieces for the same $7.99 carryout price. Domino's cited the rising cost of chicken.