Fox News exaggerated grocery inflation with one scary number
In multiple segments since February 28, Fox personalities have played up total price increases for groceries while ignoring the ameliorating wage growth. Nominal wages (that is, the numerical growth before adjusting for inflation) increased by 4.5% in 2021, by 5.1% in 2022, and by 4.3% in 2023.
Wage growth also outpaced inflation in 2023, with workers literally better off than they were four years ago. Real wages (adjusted for inflation) grew by 0.8% in 2023, a pace that was 0.2 percentage points higher than average annual real growth in the 10 years before the pandemic. Yahoo! Finance reported: “That income growth brought along increasing consumer purchasing power. In 2023, the median American worker can afford the same goods and services they did in 2019 — and still would have $1,000 left.”
On the specific issue of groceries, wage growth has outpaced the change in prices for food at home since July 2023. Fox is essentially pushing continued fear over a problem that has been under control for nearly a year.
Fox spent the past month bemoaning grocery inflation under Biden
- Fox host Neil Cavuto: Grocery prices are “where people are feeling the pain.” In an interview with Transportation Secretary Pete Buttigieg, Cavuto said: “Wouldn't they need more immediate help at things like the grocery store and, you know, cheaper cereal prices, cheaper — a host of prices? Because that's where people are feeling the pain. And this is welcome news, like you say, on prescription and related drugs, but they're hurting, right, every day they go to the supermarket.” [Fox News, Your World, 3/8/24]
- Fox interviewed outdoor lifestyle personality Eva Shockey about hunting animals for meat because “with inflation prices and with the increase in groceries it just makes so much more sense.” Fox host Sandra Smith stated that “you've got food prices up 25%,” seemingly citing inflation data that includes the last year of the Trump presidency. [Fox News, America Reports, 3/8/24; CBS News, 2/13/24]
- Fox host Dana Perino attacked Biden for targeting credit card junk fees: “You can take that with you as you go to the grocery store today and get frustrated.” [Fox News, America's Newsroom, 3/7/24]
- Fox opinion writer Steve Moore said, “It's taken three years for Joe Biden to realize that inflation is just killing families,” saying that “the inflation rate for groceries” is “up by 22%.” Moore failed to mention that wage growth has outpaced grocery inflation for several months now. [Fox News, America Reports, 3/5/24]
- Wall Street Journal editorial board member Bill McGurn on Fox Business talked about food inflation without mentioning that wages are now outpacing it. “Inflation may be reducing, the rate that prices go up,” he said. “Prices are still way higher, like 20%, than they were when Biden got in. I go to the grocery store, I buy a sack of groceries, and I’m just amazed that it’s 50 bucks for like five or six items." McGurn failed to mention wage growth outpacing inflation for most of the past year. [Fox Business, Cavuto: Coast to Coast, 3/5/24]
- Fox & Friends co-host Ainsley Earhardt: “Americans getting creative as they struggle with the high cost of groceries.” Earhardt was citing a Wall Street Journal article that referenced people sharing ”strategies for coping with food inflation," noting that more people are “turning to gardening and hunting and extreme couponing.” Fox host Will Cain claimed the portion of disposable income being spent on food is the “biggest indictment of Bidenomics.” [Fox News, Fox & Friends, 2/28/24]
Economists say grocery inflation was flat last month and down to a prepandemic low year-over-year
Several economists have noted that the February CPI report showed zero inflation in grocery costs, labeled as “food at home” in the index.
- Center for Economic and Policy Research senior economist Dean Baker: “Store-bought food prices were flat in February, up just 1.0 percent YOY.” [Twitter/X, 3/12/24]
- Former White House Council of Economic Advisers chief economist Ernie Tedeschi: “One thing heartening to see on the headline side was 0% monthly grocery inflation (‘food at home’) in February.” Tedeschi added: “Over the year, it's at 1%, which is within pre-pandemic norms. Grocery prices are key factors in consumer sentiment, at least as important as gasoline.” [Twitter/X, 3/12/24]
- RSM chief economist Joseph Brusuelas: “Food prices did not increase-0%- and food at home up 1% from one year ago which is constructive and well with pre-pandemic experience.” [Twitter/X, 3/12/24]
