McDonalds is preparing a $5 deal meal promotion.
Needless to say, the cost of food has been rising and there are no bargains at the fast food restaurants either. Are consumers starting to show their unease with price rises by voting with their pocketbooks?
Looking at the annualized food costs in the US from the St. Louis Fed, the YoY costs are coming down but still well above what was the norm ahead of the pandemic.
Food inflation YoY is still way above the pre-pandemic level
The inflation data from the Univ. of Michigan was disappointing on the surface, but as Adam points out the survey went out electronically vs phone survey (who answers the phone anyway). That may have led to the spike higher this month as traditionally, online respondents tend to be more have higher inflation expectations.
Also, lets face it … the confidence numbers of the Univ. of Michigan were not good, which if it is followed by decline in spending as a result of the concerns, it could lead to lower prices down the road anyway.