U.S. consumers have watched food and fuel prices eat away at their household budgets, and now those price hikes are spreading to other products - with the worst yet to come.
New York Federal Reserve Bank President William Dudley recently got a taste of public frustration with higher prices. He spoke to a crowd in Queens, New York on March 11 to tackle a mountain of food inflation questions. Dudley told the audience that while some prices are rising, other products are cheaper - like the Apple Inc.'s (Nasdaq: AAPL) latest iPad.
"Today you can buy an iPad 2 that costs the same as an iPad 1 that is twice as powerful," said Dudley. "You have to look at the prices of all things."
household budgets
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Hidden Inflation: U.S. Consumers Adjust Spending Habits Amid Soaring Prices
How Are You Dealing With High Food and Fuel Prices?
There's no question the staggering rise in food and fuel prices will eat away at U.S. households' income in coming months.
But there is the question of how U.S. consumers will cope with those increased costs - especially when so many are already worried about their jobs, savings, investments and retirement.
With gas prices nearing $4.00 a gallon, and the consumer price index (CPI) in February for food-at-home up 2.8% from 2010, U.S. consumers are facing an economic double whammy. As food and fuel expenses make up a larger slice of household budgets, U.S. consumers have to evaluate just which goods are worth buying.
Montana resident Myriam Garcia some days has to choose between filling up her truck with gas or buying food.
But there is the question of how U.S. consumers will cope with those increased costs - especially when so many are already worried about their jobs, savings, investments and retirement.
With gas prices nearing $4.00 a gallon, and the consumer price index (CPI) in February for food-at-home up 2.8% from 2010, U.S. consumers are facing an economic double whammy. As food and fuel expenses make up a larger slice of household budgets, U.S. consumers have to evaluate just which goods are worth buying.
Montana resident Myriam Garcia some days has to choose between filling up her truck with gas or buying food.