Taco inflation
Viewers find this commercial intriguing because, despite being over four decades old, its message about the value of money — “a dollar just isn’t what it used to be” — remains timeless. Inflation’s persistent erosion of purchasing power is a challenge that resonates across generations.
In the comment section, many users noted the significant rise in prices over the decades.
“Today that will be $53,” the top comment reads. Another commenter observes, “1 taco is like $3 now.”
However, not everyone agrees that inflation was easier to deal with back in 1980. One commenter pointed out, “$21.31 in today’s dollars after you adjust for inflation. Keep in mind that inflation was $12.5% in 1980, so no, this was not a good price and inflation was a s— ton worse then than it is now.”
The commenter raises a salient point. In 1980, the annual percentage change in the consumer price index in America was a staggering 13.5% — and that’s following an 11.3% increase the year before. In other words, while the prices in the commercial might seem low by today’s standards, they’d be perceived differently during a time of high inflation.
In recent years, Americans have also grappled with rising price levels. For instance, in June 2022, the consumer price index registered a 12-month increase of 9.1%, the largest jump recorded since November 1981.
The U.S. Federal Reserve has responded with significant interest rate hikes. These measures have helped cool headline inflation: in June, the CPI showed an annual increase of 3.0%.
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Learn MoreHow much would the meal cost today?
This resurfaced commercial also sparked a discussion on Reddit, where many users attempted to determine how much the meal would cost today.
Some used inflation calculators to make their estimates. One user humorously noted, “I tried 4 different inflation calculators, they came back at: $22.57; $31.72; $21.31; $20.99. The second one must be from California,” referencing the high cost of living in the Golden State.
According to the inflation calculator from the Federal Reserve Bank of Minneapolis, $5.59 in 1980 would be worth approximately $20.67 in 2023 dollars.
You can also compare current prices at Taco Bell to get an idea of how much a similar meal would cost today. According to the restaurant’s menu, a typical taco costs $2.99, a bean burrito will run you $1.79, while the Big Cheez-It Tostada is $3.99. Pintos N Cheese costs $2.59 and a Drinks Party Pack, which includes four medium fountain drinks, is $4.00.
If you were to order two tacos, two bean burritos, two tostadas, one Pintos N Cheese, and four soft drinks like the family in the commercial, it would cost:
2 Tacos: $2.99 x 2 = $5.98 2 Bean Burritos: $1.79 x 2 = $3.58 2 Tostadas: $3.99 x 2 = $7.98 Pintos N Cheese: $2.59 4 Soft Drinks: $4.00
Total: $5.98 + $3.58 + $7.98 + $2.59 + $4.00 = $24.13
This estimate aligns with some of the internet users’ calculations but is notably lower than the $53 suggested in the top Instagram comment.
Despite rising prices, Americans continue to frequent the fast-food chain. In Q1 of 2024, Taco Bell’s U.S. system sales increased by 4%, with same-store sales growing 2%, according to the latest earnings report from its parent company Yum! Brands.
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