Inflation Is Creeping Up On The Rich

Key Takeaways

• Rapper Cardi B took to Twitter to highlight high grocery costs.
• The latest Consumer Price Index report indicates costs have risen by 7.1% in the last year.
• The rising costs of eggs are one item of note, with an average price of $3.58 per dozen in November 2022.

It’s no secret that costs are rising in grocery stores nationwide. If you’ve been to your local supermarket lately, you might be shocked by the sky-high prices of basic staples, including eggs and milk.

Even the rich are noticing the steep rise in costs, and many are expecting a so-called richcession.

Rapper Cardi B took to Twitter with her thoughts on rising costs, showing that even multi-millionaires can commiserate about the higher prices. Let’s take a closer look at the situation.

Cardi B’s Tweet

Although Cardi B is a multi-millionaire, she has noticed the steep rise in food costs. On January 3, 2023, the rapper tweeted, “Naaaaaa grocery shopping prices are ridiculous right now. You might as well eat outside!!”

Later that day, she tweeted about lettuce, asking why it costs $6 at her local grocery store. The tweets sparked a flurry of reactions on the social media platform.

While some users thought she was too rich to care about the cost of groceries, others applauded her for spotlighting the serious problem households face nationwide.

Cardi B posted a video in response to the mixed feedback. Within the video, she challenged those who gave her negative feedback by highlighting that budgeting is essential for everyone, regardless of their income, since it protects their financial wellbeing.

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She also said it was important for her to highlight the prices because if she thinks they are high, she can only imagine how middle or low-income households feel.

Ultimately, the rapper ends the discussion by saying she hoped to shine a light on this issue with her large platform. There is no denying that she is correct, as households across the nation are facing a steep climb in costs for their essential items.

Inflation Facts

If your household is like most across the country, you’ve felt the pinch of inflation over the last year. According to a Gallup survey conducted in August 2022, over 50% of Americans said that price increases were causing financial hardships for their households.

Here’s a closer look at the breakdown of high grocery costs.

Consumer Price Index (CPI)

The CPI monitors the cost of a standard basket of consumer goods. It includes food expenses, housing costs, and everything in between.

Throughout 2022, we saw the CPI spike. The 2022 peak occurred in June when the year-over-year CPI reached 9.1%. Since then, inflation has been subsiding slowly.

Although inflation has cooled from its 2022 peak, most of us still have sticker shock over essential items.

In November 2022, the latest CPI report showed that prices were up 7.1% from last year. That’s the lowest CPI update in a year. However, inflation is still taking a significant bite out of our bank accounts.

The CPI reported that the cost of food at home has risen by 12% in the last year. Additionally, the price of eating food outside of the house has increased by 8.5% in the last 12 months.

Some Items Are More Expensive Than Others

Inflation doesn’t hit every single grocery store item in the same way. If you’ve filled up your cart recently, you’ve likely noticed that the cost of some products is rising faster than others.

While Cardi B called out the price of lettuce, many shoppers were surprised by the steep rise in egg costs. Some consumers have seen egg prices rise to over $5 per dozen.

Of course, the cost of eggs varies based on your location. Nationally, egg prices have risen to $3.58 per dozen. That’s more than double the cost of $1.33 per dozen in August 2020.

As a shopper, it’s getting harder to make ends meet at the grocery store. While you can maximize savings with coupons and sales, many households find the rising grocery costs challenging.

How to Invest During Times of Inflation

Although the Fed has been steadily pushing interest rates higher, inflation has remained stubbornly high. As an investor, it’s hard to know what strategy is best for your portfolio in times of high inflation.

Luckily, you can outsource the sometimes tedious task of building and managing an investment portfolio with the help of Q.ai.

Q.ai offers Investment Kits, which use artificial intelligence (AI) to adjust the kit based on changes in the market. As inflation impacts your portfolio, Q.ai will make the appropriate adjustments based on your goals and risk tolerance.

If you want to invest during inflationary times without the pressure to keep up with market changes, consider working with Q.ai. One specific kit investors with inflation and recession concerns right now is the Precious Metals Kit.

Bottom Line

Inflation is putting pressure on households across the U.S. Even the rich and famous, like Cardi B, are noticing the sky-high costs of basics at the grocery store.

Although inflation has cooled slightly from its recent 9.1% peak, it’s still sitting well above the Federal Reserve’s target rate of 2%.

With inflation remaining stubbornly high, we might be in for a wild ride in 2023. Regardless of what comes our way this year, it’s likely that grocery store costs will continue to put pressure on our budgets in the coming months.

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