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Market reports show the U.S. economy is seeing strong payrolls and declining inflation, but some small business owners told ABC News they’re still feeling the pinch.
When Mia Sakai opened her Chicago bodega in December 2020, she had to deal with the pandemic, supply chain issues, and subsequent increases in the cost of goods, costs she passed on to customers.
“It’s not easy and it’s not what we want to do, but we also want to continue to do business here and continue to serve the neighborhood,” Sakai told ABC News. .
Rising prices at grocery stores are one reason Americans are feeling depressed, experts say.
According to government data, food inflation increased by 25% from 2019 to 2023, faster than other categories such as housing, clothing and healthcare.
Treasury Secretary Janet Yellen told ABC News that while people sometimes experience sticker shock when purchasing products, she doesn’t expect it to continue.
“Food prices are pretty stable. They’re not rising at a rapid pace,” she says.
Yellen recently spoke in Chicago about the state of the economy, letting Americans know that the economy is not as bad as they think.
He stressed that wages are finally catching up with price increases.
Economic data from Moody’s Analytics shows that the typical U.S. household now spends $1,019 more each month on the same goods and services than it did three years ago due to inflation, while wages average $1,072 a month. It’s going up and offsetting that. higher price.
Recent surveys have shown that consumer confidence has gradually recovered from its June 2022 lows, and Yellen suggested the data shows a shift in public sentiment about the economy.
But Alexandria Jones, owner of a vintage clothing store in Chicago, said she’s still struggling.
Her landlord raised her monthly rent from $1,400 to $1,750, but she was unable to hire additional staff.
“Last year, I logged 11 out of 365 days of not being here because I had to be here,” she said.
Rattleback Records owner Paul Ruffino told ABC News that he’s fortunate that business has remained steady despite the price increases.
He said the problem with the economy right now is not the message, but the messenger. Rufino said the Biden administration and other leaders need to get more information out.
“Unemployment is low, inflation is slowing, things seem to be moving in the right direction, and I hope they continue to do so,” he said.
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