Inflation, rising prices continue to hit hard for Chicago businesses, like Manny's Deli
CHICAGO (CBS) -- Inflation is heating back up, with the Federal Reserve's inflation gauge rising the highest we've seen in months. Consumer prices continue to rise.
Experts tell CBS News it's a sign high inflation still has a hold on the economy, despite the Fed's efforts to tame it.
Chicago restaurant owners tell CBS 2's Tara Molina they are getting hit twice, because of continued rising food costs, rising prices in general, and customers who – because of the uptick in costs across the board – can't afford to eat out at restaurants as often.
There's a reason Chicago institution Manny's Deli has been rolling with the punches since 1942.
"Over 80 years of business, we've kind of learned how to deal with ups and downs, and it's just unfortunate that the last three years there have been so many downs," said Manny's Deli owner Dan Raskin.
But the hit that keeps coming? Rising costs.
"Coffee prices are going up. Meat prices are going up. We just got something our bread is going up. So it's nonstop all the time," Raskin said. "To keep Manny's what it is, we have to keep buying the same high quality that we're buying."
When Raskin heard the Federal Reserve's preferred inflation gauge ticked back up?
"It's painful," Raskin said. "In the restaurant business, there's only like a 3-4% take-home at the end of the day."
Friday's report shows consumer prices up .6% from December to January, way up from the .2% increase the month before. On a year-over-year basis, prices are up 5.4%.
The consumer price index shows, year over year, consumer prices went up 6.4% in January, down from the summer, but much higher than the Fed's 2% inflation target.
And when people see price increases across the board, budgets change, and everyone is affected.
"Instead of coming here once a month, they're coming here every six months. And in the end of the year, that matters," Raskin said.
A spokesperson for the Greater Chicago Food depository said their network of food banks served 24% more households last month than the same time last year, with grocery prices up nearly 12% over the last 12 months.
At a time when food prices remain elevated, we worry that the ending of the emergency SNAP benefits that families have been relying on since April 2020 will take SNAP participants by surprise and seriously impact their ability to put food on the table. Food insecurity remains well above pre-pandemic levels with 1 in 5 households in the Chicago Metro area struggling to make ends meet. Our network of partner food pantries and meal programs served 24% more households in January 2023 than the same time last year.
Inflation may be showing signs of stabilizing, but recent consumer price index reports show that food prices remain high. Food at home index (grocery store food) remains in the double digits, rising 11.8% over the last 12 months. It will be a while before families will see some relief at the grocery store.
We, and our community partners, are bracing to meet an elevated need come March, when SNAP participants will start seeing their monthly benefits return to pre-pandemic levels. The Food Depository will work even harder to keep our partner sites stocked with healthy, nutritious food and we remain as committed as ever to providing the support our neighbors need during times of hardship. We are able to do this thanks to the continued generosity of our supporters.
In the meantime, we urge our neighbors in need to visit our website at chicagosfoodbank.org/SNAPEA for more information and to get connected to the Food Depository's Benefits Outreach Team. The Team offers bi-lingual services and will help explore other benefits programs that callers might be eligible for such as WIC and LIHEAP. People can also locate their nearest food pantry to access free emergency food.