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‘McFlation’ has spun out of control under Biden

The government is the U.S. Bureau of Labor Statistics
consumer price index This is to measure inflation.

For example, when President Joe Biden took office, year-over-year inflation was about 1.4%. CNN
Shown Biden’s inflation rate reached a 40-year high of 9.1% in June 2022.

Last week, the Department of Labor
recently pointed out Its CPI is Consumers in all cities “On a seasonally adjusted basis, it rose 0.3% in April after rising 0.4% in March.”[.] … Over the past 12 months, the all-item index increased 3.4 percent on a seasonally unadjusted basis.”

Prices generally rose about 21.5% between December 2019 and March 2024, according to the BLS inflation calculator.
according to To The Street.

Some consumers
Apparently Instead, they looked to fast-food prices to gauge how much purchasing power they’ve lost in recent years.

FinanceBuzz makes historical price comparisons easy.
Contrasting Fast food menu prices for 2014 and 2024 based on price data obtained from ItsYummi.com, FastFoodMenuPrices.com, and MenuWithPrice.com, cross-referenced with official restaurant websites.

The breakdown is as follows:

  • McChicken rose 199% in 10 years, from $1.00 in 2014 to $2.99 ​​in 2014.
  • The McDouble increased in price by 168%, from $1.19 to $3.19.
  • Medium fries increased 138% from $1.59 to $3.79.
  • The Quarter Pounder with Cheese meal increased in price by 122%, from $5.39 to $11.99.
  • The Oreo McFlurry increased in price by 88%, from $2.39 to $4.49.
  • 10 Piece McNugget Happy Meal reduced by 83% from $5.99 to $10.99.
  • McNugget Happy Meal 4-Piece is 67% off, from $2.99 ​​to $4.99.
  • The Big Mac will be reduced by 50% from $3.99 to $5.99; and
  • The price of a medium drink increased 25 percent, from $1.29 to $1.61.

McDonald’s
Reportedly He disputed that figure, saying “prices are set by individual franchisees and vary from restaurant to restaurant” and that he’s not the only restaurant struggling with the situation as some say.Mcflation

Menu prices at Popeyes Louisiana Kitchen are said to have increased by an average of 86% since 2014. Taco Bell prices have reportedly increased by an average of 81%. Ten years later, dining out at Chipotle Mexican Grill is apparently 75% more expensive.

Some of the more dramatic price increases appear to have occurred in the past four years.

street
shown The price of a medium serving of fries at McDonald’s has increased 134.1% since 2019, from $1.79 to $4.19, the price of a McChicken has increased 201.6% from $1.29 to $3.89, the price of a Big Mac has increased 87.7% from $3.99 to $7.49, and the price of a cheeseburger has increased 215% from $1 to $3.15.

“As we move into 2024, we’re probably going to see a lot of focus on what I would call affordability,” McDonald’s CEO Chris Kempczinski told analysts in February. he said.
report luck.

“It’s made eating at home more affordable.”

At the time, customers complained that a Big Mac cost about $18 and that McDonald’s so-called “Dollar Menu” didn’t have any $1 items.

“Eating at home has become more affordable,” Kempczinski added.

Shubhranshu Singh, an associate professor of marketing at Johns Hopkins Carey School of Business, told FinanceBuzz: “Several factors are contributing to the rise in fast food prices. First, food prices are outpacing inflation. Wage rates are also rising faster than inflation. In other words, the cost of preparing and serving fast food is rising faster than inflation.”

Singh added, “Due to increasing pressure to spend less, some consumers are downgrading from full-service restaurants to fast food restaurants, resulting in a decline in overall demand for fast food. is increasing,” he suggested.

“The war in Ukraine and other factors have led to rising food prices.”

“With the increased need to multi-task and less time to prepare and enjoy meals, consumers’ tastes for fast food have become more entrenched. “We are becoming more willing to accept this,” Singh continued. “To make matters worse for fast-food restaurants, consumers are tipping less at restaurants with poor or no service. Fast-food restaurants are responding by raising prices.”

Michael Bognanno, an economics professor at Temple University, told Finance Buzz that competition for low-wage workers after the pandemic has led to higher wages, costs that have often been passed on to customers, plus “the war in Ukraine and other factors have led to higher food prices. Energy prices, particularly electricity, have risen by more than 10% in 2022 and are still rising faster than the rate of inflation.”

And prices are being pushed up even further by minimum-wage increases in states like California, where all fast-food restaurants must pay workers a $20 hourly minimum wage, except for chains run by billionaire friends of Democratic Governor Gavin Newsom.

Less than a month after the new wage hike, Kalinowski Equity Research reported that prices at some restaurants had increased by as much as 8%.
report KNBC Television.

“Since it took effect, California consumers fed up with inflation have continued to experience job losses, reduced work hours, restaurant closures, and higher prices,” the California Restaurant Association said in a statement.

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