Americans cutting back on essential items to stave off inflation

The U.S. job market remains strong, consumer spending is resilient, and inflation has been slowing. But elevated prices for food, rent, gasoline and other household costs have taken a toll on shoppers, as inflation nears a four-decade high.

As a result, many are reluctant to spend unless there is a big sale and are being more selective with what they will buy — in many cases, trading down to cheaper stuff and less expensive stores.

Due to elevated prices for food, rent, gasoline and other essentials, many people were being more selective, reluctant to spend unless there was a big sale. Some were dipping more into savings, turning to "buy now, pay later" services that allow payment in installments, or running up their credit cards at a time when the Federal Reserve is hiking rates to cool the U.S. economy.

Marcia Hallager works in West Chester, where she has lived for more than four decades. She said she and her husband had started noticing rising prices at the gas pump, but then also confronted them in the grocery store.

"There seemed to be a pause in COVID, and then were noticed that groceries were going up," she said. "The price of meat, and vegetables. And fruit! You have to be really intentional about what fruits and vegetables you get now. But not only were the prices going up, but it seemed the products you purchased were less.

"With winter approaching, we've had to sit down, my husband and me, and figure out what oil company we're going to use this year, and which one will better serve you," Hallager said.

Like many seniors on a fixed income, Linda Ott of Phoenixville said she is battling inflation by not going out to eat and avoiding unnecessary travel.

Chester County Commissioner Michelle Kichline said she and her family are having to trim expenses as winter arrives.

"To deal with inflation we are keeping thermostats low and trying to shop for meats and veggies that are on sale," she said. "Our house is older and has oil heat, so it's been expensive. The grocery bills have been shocking: we are empty nesters with our kids in college, but our food bills can often be higher than when we were shopping for four.

Said Jamie McVickar, a retiree living in West Vincent, "The main way inflation has impacted us is the price of gas. I'm glad my w

ife insisted on buying an electric vehicle so now we use her car whenever we can. And we appreciate all that (President Joe) Biden has done to get the prices down by over a dollar a gallon since its peak after the war started."

The West Chester Area Senior Center has seen a recent increase of about 20 percent in visits for people using the free weekly Corner Cabinet food distribution program.

"We just completed our big Thanksgiving holiday food box distribution and, with the help of many of our partners and donors, we were able to source and distribute 50–60-pound boxes including poultry and all the traditional holiday 'fixins' along with fresh produce and dairy items," said Kathy Sullivan, executive director of the West Chester Area Senior Center on Union Street.

The seniors visiting the Corner Cabinet each week are not only experiencing inflation at the grocery stores but also with increased rent, medication, utilities, and virtually everything they need to live each day, Sullivan said.

"With so many on a fixed income, it gets harder to make ends meet each month, Sullivan said.

David Katz, owner of David Katz Gallery in West Chester said the stinging blow of inflation has put a crimp on his lifestyle.

"I'm not going to not spend on things that are needed and wanted," he said.

Brian Dunn owns an insurance agency and is a West Whiteland Supervisor.

"The main problem with inflation is corporate greed," Dunn said. "It's a domino effect for everyone. When we have inflation, everything seems to go up. As an insurance agent, rates are starting to climb. The price of car repairs is going up and people start shopping for other insurance companies."

Later this year, Chris Pielli will take over as state representative in the 156th District.

"There are many reasons for this terrible worldwide inflation," Pielli said. "One factor not mentioned enough is price gouging which leaves workers behind and hurts the small local businesses that are the cornerstone of our communities.

"if you doubt this just remember that in 2008 a barrel of oil was $145, and a gallon of regular gas was $3.85. In 2022 a barrel of oil is $81 and a gallon of regular gas is $3.93. Why are the gas prices so high? Ask the oil companies.

"The truth is high gas prices drive price increases on food, clothing and everything your family needs. Bottom line, working class folks are getting clobbered by high prices across-the-board, and we as elected officials need to make it clear that we understand what's going on, we feel their pain, and we're going to fight tooth and nail to lower costs."

Higher prices have yet to cause much of what economists call "demand destruction" — a pullback in spending that could quell inflation. Though higher gas prices have caused Americans to drive less, there isn't much evidence of significant cutbacks elsewhere.

Restaurant prices, for example, jumped 0.9% in August and have risen 8% in the past year. But that hasn't noticeably discouraged people from going out. Restaurant traffic has surpassed pre-pandemic levels on Open Table, an app that tracks reservations, and was still increasing into September.

Overall, consumers have largely kept up their spending, even with rampant inflation, though perhaps through gritted teeth. In July, spending rose 0.2% after adjusting for higher prices.

Staff writers Michael P. Rellahan, Bill Rettew Jr., Jen Samuel and the Associated Press contributed to this report.