Dec 1, 2023
Inflation has emerged as a trending topic on social media, capturing widespread attention as people post receipts of everyday items.
For instance, TikTok user Topher Olive went viral after he posted a video expressing frustration over the cost of his meal at McDonald’s.
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“So I get there’s a labor shortage. I get there’s wage increases and a number of other things, but $16? $16 for a burger, a large fry and a drink? It’s just crazy!” he says in the clip, which has received over 670,000 views, 32,000 likes and nearly 6,000 comments.
The video shows a receipt from a McDonald’s in Post Falls, Idaho, where Olive purchased a Smoky Double Quarter Pounder BLT, a large fries and a large Sprite for $16.10 after tax.
The story even made its way to the White House Office of Digital Strategy, according to The Washington Post.
“What are we supposed to do, tell the president or Chuck Schumer to send a tweet saying, ‘Hey, most Big Macs aren’t that expensive?’" an unnamed Democratic official told the Post. "It would look ridiculous.”
Big Macs aren’t that expensive
While many consumers have felt the impact of inflation, it’s important to note that the burger featured in Olive’s video is a limited-edition novelty item, not a Big Mac. Big Macs typically cost quite a bit less.
The Post referred to data from The Economist’s Big Mac Index, demonstrating that while the price of the iconic McDonald’s burger has risen over the years, it’s far from $16.
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“The average Big Mac nationally as of this summer cost $5.58, up from $4.89 — or roughly 70 cents — before Biden took office,” the Post article says.
White House Press Secretary Karine Jean-Pierre also addressed the issue of inflation during a recent press briefing.
“This holiday season, families are seeing lower prices on everyday items from gas to groceries,” she said.
So has America won the war against inflation?
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Grappling with higher price levels
Nobel laureate Paul Krugman recently declared victory over inflation in a post on X, formerly known as Twitter.
“The war on inflation is over. We won, at very little cost,” Krugman wrote.
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Jeremy Siegel, professor of finance at the Wharton School of Business, had a similar view.
“We are not going to have any more inflation,” Siegel said in a recent interview with CNBC.
Headline inflation has come down over the past year. In October, the U.S. consumer price index saw an annual increase of 3.2%, down from its peak 9.1% increase registered in June 2022.
But the prices of many necessities remain elevated. The latest CPI report showed that, over the last year, the food index increased 3.3% and the shelter index rose 6.7%.
Gas prices, as Jean-Pierre pointed out, have indeed declined. According to motoring and leisure travel giant AAA, the national average price for mid-grade gas in the U.S. is currently a little over $3.70 a gallon, down from $3.97 a year ago.
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Jing is an investment reporter for MoneyWise. He is an avid advocate of investing for passive income. Despite the ups and downs he’s been through with the markets, Jing believes that you can generate a steadily increasing income stream by investing in high quality companies.
