Attempting to downplay this reality , Paul Donovan , chief economist of UBS Global Wealth Management , wrote in an op-ed in the New York Times that Americans might be overestimating how serious inflation is , feeling the pinch most especially when they buy something as small as a candy bar . “[ C ] onsumers perceive inflation as higher than it actually is ,” wrote Donovan . Further , he claimed , “[ h ] umans are genetically programmed to emphasize bad news over good news when they make decisions .” Donovan is implying that we ’ re just imagining high grocery bills .
In fact , inflation in the grocery industry has been higher than in other industries , rising 25 percent over the past four years compared to 19 percent overall , and many have pointed to simple greed as the reason : food prices are high because the companies setting prices think they can get away with padding their profits . Since we all have to eat , naturally this hits lower-income families harder , rather like a regressive tax . A new report by the Groundwork Collaborative found that in 2022 , “ consumers in the bottom quintile of the income spectrum spent 25 percent of their income on groceries , while those in the highest quintile spent under 3.5 percent .”
Inflation in the grocery industry has been higher than in other industries , rising 25 percent over the past four years compared to 19 percent overall , and many have pointed to simple greed as the reason : food prices are high because the companies setting prices think they can get away with padding their profits .