The Cost of Living Keeps Getting Worse

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In this video, Leaflit discusses the significant increase in the cost of living over the past few decades, using personal experiences at restaurants to illustrate the rising prices of food and beverages. She reflects on how items that were once affordable have become considerably more expensive, highlighting the broader economic trend of inflation affecting everyday expenses.

Historical Overview of Inflation:

To understand this phenomenon, it's essential to examine the Consumer Price Index (CPI), which measures the average change over time in prices paid by urban consumers for goods and services. According to available data, the CPI has experienced notable increases over the years:

1980: 82.4

1990: 130.7

2000: 172.2

2010: 219.2

2020: 258.0

2024: 351.6

These figures indicate a consistent rise in the general price level, reflecting how the purchasing power of money has diminished over time.

Impact on Food Prices:

Focusing on the food industry, several factors have contributed to the escalation of prices:

Inflation and Tariffs: In 2025, grocery costs escalated due to general inflation and new 25% tariffs on imports from Mexico and Canada, affecting key staples like strawberries, avocados, fresh tomatoes, beer, and beef.

Supply Chain Disruptions: Events such as pandemics, natural disasters, and geopolitical tensions have disrupted supply chains, leading to shortages and increased costs for certain food items.

Consumer Responses:

In reaction to these rising costs, consumers have adopted various strategies:

Shifting to Store Brands: To counteract rising prices, 75% of consumers plan to adjust their shopping habits by opting for store brands, which 46% specifically intend to purchase more frequently.

Reducing Consumption: Some individuals have chosen to dine out less frequently or select less expensive menu items to manage their budgets effectively.

Conclusion:

Leaflit's observations underscore a broader economic reality where the cost of living, particularly concerning food and dining, has risen substantially over the decades. Understanding these trends is crucial for consumers as they navigate financial decisions in an ever-evolving economic landscape.

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