STATE COLLEGE– For several years, companies and restaurants have raised prices gradually in order to not ward off consumers. However, within the last year, materials to make and store food, wages, and costs of ingredients increased and these costs has all been transferred onto consumers.

One year ago, a bag of potato chips cost about $5.05. Now, they stand at $6.05.

Profits have also increased for large companies. Pepsi-Co, whose prices were up 17 percent in the latest quarter from previous reports, grew over 20 percent in their third-quarter report. Restaurants had seen similar results. Chipotle, reported a 26 percent increase from their reports a year prior.

Raising consumer pricing does make the Federal Reserve’s goal of bringing down inflation more difficult. Concerns grow that the economy could be heading toward a recession, the latest one being in 2008, and companies are continuing to raise their pricing for consumers. Fed officials should announce their latest rate decision this Wednesday afternoon.

Pricing has been raised across the boards. At home, it has raised to 13 percent. However, eating at restaurants has risen by 8.5 percent. Though consumers have remained resilient considering one year prior, most people couldn’t leave their houses. Consumers have been making changes in reducing their spending, which has had consumers embrace store branding and values.

There are even more factors to take into account as well which this article below goes further into detail.

Read this great article by Isabella Simonetti and Julie Creswell right here: https://www.nytimes.com/2022/11/01/business/food-prices-profits.html