With all the fluctuations in inflation over the past few years, it’s no wonder people complain about food costs. However, Netflix personality and self-help author Ramit Sethi says, “Feelings about grocery costs, while they may be true feelings, are very, very inaccurate.”
In an interview with Politico’s Chief News Officer Alexander Burns, Burns mentioned that as a political reporter, he hears a lot of voters complaining about how much grocery items cost; however, political campaigns rarely focus on this issue.
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“I have a rule, which is, never trust someone’s self-report of grocery costs,” Sethi replies. “And I know this because I’ve talked to thousands, actually tens of thousands of people. And they’ll often say, ‘Inflation is crazy, it’s impossible to afford groceries anymore.’ And I’ll say, ‘Is that so? ?'”
Sethi said people will tell him they are paying three times what they were three years ago buying the same items. “And as we dig into it, of course, people don’t track how much they’ve actually spent,” Sethi says.
It seems that many people, when observing the cost of groceries, do not take into account other changes that have occurred in their personal lives over time, which may also contribute to changes in their purchasing habits. Seth told Politico, “They’ll say, ‘No, I’m buying the exact same items. Apples for apples. [I’ll ask], ‘Hey, how old are your kids?’ ‘Oh, now they’re six …’ Well, when kids get older, they eat more. Families change”.
Indeed, according to the USDA, US home food prices rose 5% from 2022 to 2023, and the US Bureau of Labor Statistics reported that from 2021 to 2022, home food prices had increased with 10.8%. While this may seem significant, it is nowhere near triple, or even double, the costs that consumers claim to be spending on groceries.
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Sethi argues that people’s perceptions are often skewed by their failure to accurately track their spending and by the psychological impact of media coverage. “As we see in personal finance, it’s very difficult for us to properly amortize costs once every 10 or 20 years. It’s the same with grocery costs. They’re very prominent in our minds because we go to the stores grocery. Many times a week and, more importantly, we hear the press talking about it all day. But when I challenge my listeners and readers, “Show me the actual numbers” – they almost never produce them. “
It is undeniable that inflation affects food prices, but the extent is often misunderstood. Sethi points out that individual perceptions often exaggerate the actual financial burden. To gain a clearer understanding of personal finances, it is essential to track expenses accurately and consider all contributing factors. For those who struggle to navigate these complexities, consulting a financial advisor can provide tailored advice and strategies to effectively manage grocery spending and broader financial goals.
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Ramit Sethi Says Americans’ Feelings About Food Costs Are ‘Way Inaccurate,’ Says Ramit Sethi, originally appeared on Benzinga.com
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