Cost of living for low-income Americans remains high as food prices continue to surge

Victor

The cost of living among American households who spend a massive part of their groceries has continued to be unbearable due to the rise in food prices, making the cost of living painfully high.

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Food stock photo.Dan Gold / Unsplash

Inflation is squeezing household budgets across the low-income earning American citizens due to the consistent increases in food prices each month this year, a report by Bloomberg has shown.

The Washington Post quoted federal data that shows a jarring 12.2% increase of groceries recently, compared to 12-months ago, making it the largest increase in a long time.

According to a late-Spring update from the United States Department of Agriculture (USDA), residents in the United States were warned to brace themselves for an increase in various food categories.

This increase was predicted to be somewhere between 4.5% and 5.5%, with meat going for 42.5%, the Economic Research Service report that was released back in March showed.

The increase in prices of essential food items has seen corporations placing the blame solely on the cost of doing business, CNN examined.

This is due to the costs of labor and materials surging due to Covid-fueled supply issues during the pandemic, and then it was exacerbated by Russia's invasion of Ukraine.

The demand for goods and services has reportedly remained stronger than ever, which is said to be one of the reasons why food prices have surged.

High commodity prices caused by those supply-chain disruptions have benefited the U.S. agricultural giants, making up for the lost time.

CNN also reported that CEOs are making more returns due to the executive compensation seeing an all-time high, and profit margins seem to be getting fatter.

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