McDonald's is running a $5 meal promotion.
Needless to say, the cost of food is rising and there are no deals at fast food restaurants either. Are consumers starting to show their discomfort with rising prices by voting with their wallets?
Looking at annual U.S. food costs from the St. Louis Federal Reserve, year-over-year costs are falling but are still much higher than what was the norm before the pandemic.
Year-on-year food inflation remains well above the pre-pandemic level
Inflation data from the university. Michigan was a disappointment on the surface, but as Adam pointed out, the poll was conducted electronically versus polled by phone (who answers the phone anyway). That may have fueled the rally this month, as online participants traditionally tend to have higher inflation expectations.
Also, let's face it…the university's confidence numbers. Michigan has not been good, and if it is followed by a drop in spending as a result of fears, it could lead to lower prices in the future anyway.