Inflation Frenzy and the New “Misery Index”: Rising Food Prices Create Problems for California Restaurateurs

by Little Miss Attila on April 3, 2011

They’ve run out of other ways to save money, and they are already taking it on the chin.

Keep in mind that the rising rates given for inflation don’t even take into account rising costs of food and fuel. Fuel, of course, is only about 5% of the average household budget, but when fuel prices go up, so does everything else. (In the early 1980s, fuel was over 6% of the average household budget, and our cars were less fuel-efficient, so it hit us harder in the direct way. It’ll take longer this time around, but we’ll feel the indirect effects rather quickly.)

When these SF eateries raise their prices, some of them will go out of business, since price-sensitive consumers are eating out less anyway, and will do it even less as it gets pricier. The same pattern will hold here in L.A.–and in Sacto, San Diego and the OC.

And most of the rest of the country will follow us.

Of course, with “commodities” prices being removed from official inflation rates, we’ll have to find a new formula to calculate the “misery index.” Because the misery itself–it’s back, Baby.

Via Insty.

UPDATE: Also via Insty, Ed Driscoll has our “Scary-Ass Charts of the Day.”

UPDATE 2: Stacy has some more context for us. Trust me, the country is in such a deep economic hole right now that no matter what, 2012 will be about “the economy, Stupid.”

It’s time to bring back both Carter’s and Clinton’s campaign issues, and hammer them in.

UPDATE 3: Gay Patriot (West) has more.

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