THE power of the purse has diminished for the average American. Even everyday food bills are gnawing into their pockets.
“A slice of plain pizza cost US$1.75 (RM5.54) in my Brooklyn neighbourhood just several months ago. Now, we have to pay US$2.25 (RM7.12),” said C. Lee, a mother of two teenage boys who prefer the flat, round bread with lots of sausage toppings.
Described by The New York Times as a staple of the New York diet, the pizza is costing more now due to prices of commodities such as wheat, which has leapt almost 50% within a year.
Bagels, another New York favourite, are also digging a bigger hole into the wallets. Many of these pizzas and bagels are at least 30 cents more compared with just 12 months ago.
New York Post cried out “Holey moley – a buck a bagel” on Feb 28 when, according to the report, its price almost doubled from last year.
The famous H&H Bagels here, whose website declared that their product is enjoyed by celebrities such as Madonna, Barbara Streisand and Tom Hanks, is now US$1.20 (RM3.79).
According to H&H, the bagel which was introduced by Jewish immigrants to the United States, is made mostly of flour, a basic ingredient whose cost is hitting the roof.
“Snackflation!” screamed New York magazine in its March 31 issue. The report made a price survey and found that it takes a lot more currently to swallow the famous black-and-white cookies, cheeseburgers, fries and cheese cakes.
A recent World Bank report noted that wheat prices went up 181% within three years. Overall food costs surged by 83%.
World Bank president Robert Zoellick has found that the cost of wheat was now the highest in 28 years while the price of rice is at a record 19-year high.
Lee, who shops for groceries almost daily for her family of four, can rattle off a long list of staples that are pricier now.
“Dunkin' Donuts cost US$5 (RM15.82) for half a dozen. We used to be able to get them at US$3 (RM9.49),” she said. “Don't even get me started on the eggs.
“At one time, it went up to US$2 (RM6.33) a dozen although it has gone down to about US$1.69 (RM5.35) a few weeks ago. The other day, a supermarket here offered them at US$1.39 (RM4.40) and the shelves were cleared so fast that all that was left were some broken shells.”
Her predicament is similar to that of Japanese housewives, who, according to a news report, are keeping a lookout for discounts and cutting down on other expenses.
For the Lees, the option is to dine out less frequently. Fewer outings would also mean less fuel consumption for the family's Toyota RAV4. Petrol costs about US$3.63 (RM10.65) a gallon these days.
She knew of people who would drive to certain locations in nearby New Jersey where gas prices are cheaper. “But that is not really a good idea for me; don't forget that you would also have to pay toll to get there,” she said.
Their spending habit is a reflection of how Americans are cutting back on food and leisure. Three days ago, the Commerce Department reported that the US economy grew 0.6% in the first quarter of this year.
“Consumer spending fell for a broad range of goods and services, including cars, auto parts, furniture, food and recreation, reflecting a growing inclination toward thrift,” according to The New York Times on Thursday.
“Areas in which spending rose were predominantly those not considered optional purchases, including health care, housing and utilities.”
Nani Rahayu, a Malaysian who runs a part-time catering business from her home in Queens, New York City, really felt the pinch in the past few months.
“Previously, I would prepare food for the next two days for my husband and me. Occasionally, the leftovers would go to waste. Now, I would just cook what's necessary for the day only,” she said. Fortunately for the couple, they do not have a habit of eating out.
Basmati rice, she said, had skyrocketed in price. What used to be US$8 (RM25.37) per pound is now US$12 (RM38.05).
“It was worse for a friend of mine who went looking for rice at a large wholesaler that is known for its lower prices. He could not find any rice on sale there,” she said.
Inflation is hitting even the 99-cent discount shop that she patronises. “I need containers to pack the food which I cater for my customers. At that store, it costs US$1.29 (RM4.08) for two containers instead of 99 cents (RM3.13) for two,” she said.
Others just gave up on their daily routine. As pay cheques grow smaller, belt-tightening is the way to go although Americans have not resorted to banging pots and pans like women in Peru did on Wednesday to demand that the government act on rising food bills.
