WASHINGTON, D.C. (NBC) – Concern is growing over the nation’s soaring inflation. It’s driving up costs on just about everything, including groceries to gas. And now, it is leading a lot of Americans to change how they shop and what they buy.
Shoppers are pinching pennies as inflation continues to soar and fears of a recession are on the rise.
According to new data, consumers are buying more generic store brands for the first time in almost two years, choosing cheaper versions of cooking oil, eggs, sugar, toilet paper and baby formula. And shoppers are purchasing smaller amounts of products like cereal and cleaning supplies as inflation remains at a 40-year high.
Families are making cuts to afford those rising grocery and gas bills.
At “Jim Dandy’s” a restaurant in Rutherford, New Jersey, owner Brian Flynn is feeling the pain. He said, “The way that food costs are running out of control, and you know the labor shortage, it’s really unprecedented.”
He said he has hiked prices four times due to the rising cost of labor, frying oil and chicken but still loses money on every plate of chicken fingers. “I should charge $21 for five chicken fingers and fries. I don’t. I charge $13.95.”
With inflation sky-high, Goldman Sachs now puts the odds of a recession at 38% in the next two years. Last week, changes in the bond market signaled a possible economic slowdown.
Recessions usually trigger widespread job cuts and unemployment. But Federal Reserve Chair Jerome Powell said he’s trying to prevent that by raising interest rates gradually this year.