Rising Food Prices Force Consumers To Cut Back On Groceries
CARLE PLACE, N.Y. (CBSNewYork) — Grocery shoppers are holding back on their spending amid rising food prices and recession worries.
Marty Friedman of North Bellmore blames the drop in economic consumer confidence and the rise in food prices on Washington wrangling over a first-ever U.S. default.
“No one’s comfortable. I want to kick everyone in Washington out,” he told CBS 2’s Jennifer McLogan.
According to a new Siena College research poll, talk of the default and Wall Street’s plunge are worrying shoppers.
Betty Acquafredea of Uniondale said she’s focusing only on the essentials.
“Well, you buy what you need. Everybody is doing that,” she said.
“My dad is a waiter. He can’t afford these things,” added Cleber Guaman of New Hyde Park.
Locally, food costs continue to hit hard as 71 percent of Tri-State Area residents report their finances are either very or somewhat seriously impacted by grocery prices.
Former trader Michael Driscoll, a business professor at Adelphi, said he believes it’s a combination of fears over food, gasoline, energy, housing and 401Ks.
“When you do have a crack in the overall market like what we’ve seen in the last two weeks, it does have a very profound impact on investor and consumer psyche,” he said.
Consumers like Rachael Jones of Old Westbury worry that the cost of eating healthy is becoming prohibitive.
“You have to get really creative. I don’t just go to one store. I go to BJ’s. I get the bulk. I go to Stop and Shop. And I go to maybe a Fairway or something just for the fruits and produce,” she said.
Experts said the stock market is rattling Americans’ confidence, making them less inclined to spend, especially on health foods.
Some analysts believe the recovery will be drawn out and more painful than first expected.
Why do you think food prices have risen? Sound off in our comments section below…