Janet Yellen has been branded ‘tone deaf’ for a response she gave when asked about inflation in the US.
The Treasury Secretary – who is worth about $20 million – said she goes to the grocery store every week, but has not felt ‘sticker shock’ at higher prices.
It does does tally with the experience of most Americans who have been battling with food prices having risen by 20 percent in the last five years, according to Labor Department data.
The cost of some everyday essentials has jumped much more – with eggs and milk now costing double what they did before Joe Biden took power.
Grocery prices are a key topic for voters ahead of November’s election, with many Americans hoping that punishing costs will soon start to come down.
A DailyMail.com reader from Palm Beach, Florida, said: ‘Janet Yellen is tone deaf in her response.
‘The dramatic increases over a relatively short amount of years is a betrayal. People are probably less concerned with the technical whys and more concerned with the fact that if they don’t pay the increased cost, their cupboards will be empty.’
Analysis of data from the US Bureau of Labor Statistics shows just how much prices have increased for everyday groceries in the last five years
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Inflation has proved stubborn over the last few years.
While the annual rate of inflation has fallen from a 40-year high of 9.1 percent in June 2022, it is still above the Federal Reserve’s 2 percent target at 3.3 percent as of last month.
Analysis of data from the US Bureau of Labor Statistics shows just how much prices have increased for everyday groceries since before the pandemic and President Biden took office.
Since 2019, the price of a dozen eggs has skyrocketed by 98 percent – rising from an average of $1.36 to $2.70 now.
A loaf of bread, meanwhile, has gone up in price by 53 percent.
It would have set back the average household $1.29 in May 2019, but typically cost $1.97 in May 2024, according to analysis of the data by CBS News.
Cookies have also gone up 53 percent in price over the period – from $3.35 to $5.12.
A pound of coffee, meanwhile, has risen by 44 percent, taking it to an average of $5.99 from $4.17 five years ago.
A pound of ground beef and a pound of chicken breast have increased by 35 and 33 percent, respectively, and will now cost the average American $5.15 and $4.12.
The price of a pound of rice has also gone up by 32 percent, from an average of $0.76 to $1, and half a gallon of milk is now $3.86 in a typical store – up 30 percent from 2019.
A pound of potatoes has got 25 percent more expensive, rising from $0.77 five years ago to $0.96 today.
Other essentials have seen less significant rises, but are still more expensive than they were before the Covid-19 pandemic and before President Biden took office in 2020.
The price of a pound of bananas has risen 7 percent – costing an average of $0.62 now – while a pound of cheddar cheese has increased by 4 percent and the cost of a pound of tomatoes is up 2 percent, making it $1.86 at a typical store.
Price rises from stubborn inflation are also felt by Americans when buying gas at the pump and paying rent.
In the interview with Yahoo! Finance, Treasury Secretary Yellen put the price increases down to a variety of factors.
‘I think largely it reflects cost increases, including labor cost increases that grocery firms have experienced, although there may be some increases in margins,’ she said.
One DailyMail.com reader said ‘”out of touch” covers the current administration.’
A reader from New York said: ‘I’ve been saying for months there’s no way these “economists” go food shopping every week.’
Madeleine, from Baltimore, added: ‘Someone worth $20 million doesn’t pay attention to the prices.’
Yellen said she expects inflation to come down and says that it will ‘go back to the Fed’s two percent target’ by early next year.
She added that she had met with the CEO of Target who said the company had made cuts to some everyday items to help struggling families.
The annual rate of inflation was 3.3 percent in May – above the Fed’s 2 percent target
Major stores including Target have announced price cuts for essential items this year
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Last month, Target announced it would lower prices on at least 5,000 frequently bought products ranging from milk to diapers.
‘We know consumers are feeling pressured to make the most of their budget,’ said Rick Gomez, Target’s chief food, essentials and beauty officer said at the time.
And Target is not alone.
Walmart has this year used its famous ‘rollback’ promise to cut prices, and has invested in improving its cheaper own-label ranges, and smaller rival Aldi has also cut prices.
But while companies have suggested the cuts are to help anxious families, some retail experts have countered that it is simply good business.
University of Wisconsin economics assistant professor Andrew Stevens told local station WSAW-TV that lowering prices is often used as a marketing tool to get one up on rivals.
‘Consumers definitely notice when prices go up on something, and tend to not notice when they go down on something,’ he said.
‘So, I think what we’re seeing is Target trying to draw attention and pull consumers into their store and away from some of their competitors.’
Despite criticisms of price rises under the Biden administration, a group of 16 Nobel prize-winning economists have issued a stark warning that inflation would in fact be worse under Donald Trump.
The former president would reignite inflation and cause lasting harm to the US economy, the Nobel laureates said in a letter first obtained by Axios.
‘While each of us has different views on the particulars of various economic policies, we all agree that Joe Biden’s economic agenda is vastly superior to Donald Trump,’ the letter read.
The warning was spearheaded by American economist Joseph Stiglitz, who won the prestigious honor for economics in 2001.