Food Fight! (Part Two)
Story Ideas About The Rising Cost of Food In Your Community
In last week’s newsletter I shared some recent information about the rising cost of buying food. This week I want to put on my old manager’s hat and share some ideas about how to cover this important story as either a single story or as an enterprising series of reports.
Explaining Inflation and Food
Last week’s newsletter referred to ‘inflation’ 19 times — most from news articles I used as quotes. Journalists often like to refer to numbers and percentages in their stories, but news consumers aren’t as interested. Numbers are often hard to understand and even misleading. Consumers want to know how rising costs really affect their bottom line. So, if you’re going to use the term ‘inflation’ in your reporting, be sure you understand it and can explain it.
Our job as journalists is to take complex stories and present them in ways that are ‘clear and easy to understand.’ Understanding the inflation numbers you read in government reports will help you explain what that means to your audience.
Here are several short definitions that might be of some help to your reporting. These come from Oxford Languages and Investopedia. You can search other sites for expanded definitions —
Inflation — “a general increase in prices and fall in the purchasing value of money”
Disinflation — “reduction in the rate of inflation”
Deflation — “reduction of the general level of prices in an economy”
Consumer Price Index (CPI) — the monthly change in prices paid by U.S. consumers
Consumer Price Index for Urban Consumers (CPI-U) — 93% of the U.S. population not living in remote rural areas. It doesn't cover spending by people living in farm households, institutions, or on military bases
Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) — measures the changes in consumer prices to which certain workers are exposed. The index is primarily used on an annual basis to reflect changes in the costs of benefits paid to Social Security beneficiaries
Personal Consumption Expenditures Price Index (PCE) — also known as consumer spending, is a measure of the spending on goods and services by people of the United States
The more you learn about economics the better you understand why consumers are confused by government numbers and percentages. Remember, consumers want to know why something they bought at the store last week just cost them more this week. That’s what matters to them — along with how much their income is keeping up with the cost of goods and services. They also want to know how much things will cost next week, next month, and next year. People are living and trying to plan their lives. The better we understand how to give them that information, the better it will be for everyone.
Another thing to keep in mind as you report about inflation is that not everyone buys the same things at the same time. The U.S. Bureau of Labor Statistics (BLS) explains in ‘great detail’ how it figures the Consumer Price Index (CPI). You’ll see that the government’s ‘inflation’ list is a lot more than just the increasing cost of food —
The CPI represents all goods and services purchased for consumption by the reference population (U or W). BLS has classified all expenditure items into more than 200 categories, arranged into eight major groups (food and beverages, housing, apparel, transportation, medical care, recreation, education and communication, and other goods and services). Included within these major groups are various government-charged user fees, such as water and sewerage charges, auto registration fees, and vehicle tolls. U.S. Bureau of Labor Statistics
When reporting the current ‘inflation’ rate, keep in mind that consumers don’t purchase everything that’s in the government ‘basket’ of goods and services every month. While everyone buys food, not everyone buys the same food items. Not everyone buys a computer, a television, a mobile phone, a car, a house, or goes to college every year. However, the inflation rate is calculated each month using all kinds of goods and services, whether everyone is purchasing those goods and services each month. That’s why food prices may be going up higher than the general inflation rate. That’s important for your audience to know.
One more thing — the Federal Reserve's maximum inflation target is 2% annually. Do you know what that means? It means the Federal Reserve would be happy if inflation increased by 2% annually. That adds up to 20% per decade at a minimum. You can check this handy little online calculator to see that inflation was often higher than that for each year or decade you want to mention in your report.
Here’s a quick example that might help you explain how inflation impacts the cost of real goods and services. These figures are based on U.S. Bureau of Labor Statistics (BLS) information I found online.
I started working in a grocery store in high school in June 1964. For every dollar a person spent on an item in the store that month, BLS reports that same item would now cost $9.90. That’s how inflation compounds over time. Also, keep in mind that the inflation rate of some items is much higher than what’s published online. The real cost of food may be a lot higher than we think based on what your audience likes to eat. If they are having to cut back on some of their favorite food items because of cost, make that part of your story!
Consumer Response
Okay, as promised, here are some ideas from an old news manager about how you might cover this story. First, let’s get an idea of what families are facing with current food prices. The following information is from a U.S. News & World Report news article based on grocery prices for a family of four. The story was published in March of this year —
Thrifty plan. For a thrifty budget for a family of four, you would spend $225.60 a week or $977.70 a month. The Thrifty Food Plan, incidentally, is used to decide the benefit amounts for the Supplemental Nutritional Assistance Program, or SNAP.
Low-cost plan. For a low-cost budget for a family of four, you can plan on spending $241.70 a week or about $1,047.10 a month.
Moderate-cost plan. For a moderate budget for a family of four, you would spend $301.20 a week for groceries or $1,304.70 a month.
Liberal budget. For a liberal budget for a family of four, you can plan on paying $363.70 a week or $1,910.60 a month.
Ask people in your community how much they spend a week or a month on groceries. Are they spending more or less per month for food now than they did just a year ago? Almost everyone I ask says ‘more.’ Then ask them how they are responding to those rising food prices. Are they buying fewer food items? Are they buying the same amount of food, but less expensive items? Have they switched from more expensive ‘organic’ foods to less expensive conventionally-grown food or genetically modified food? Are they eating less food? Are they buying fewer non-food items in order to keeping putting food on the family table? If so, which non-food items did they cut? Are individuals and families going out to eat less often? If so, how are they using the money they save from not going out?
When food prices rise, spending on food typically rises as well. However, these expenditures may rise more, or less, than the rate of inflation because households may respond to higher prices by buying less food, limiting purchases of discretionary items, or choosing less expensive alternatives. U.S. Department of Agriculture
This chart shows inflation for major U.S. food categories in the past couple of years as compared to an historical average (2001-2020) —
Stories to Tell
If you’re doing a single story on the subject, you can talk with a variety of people about their personal experience — in addition to reporting official government numbers. Talk with single adults, young marrieds, married with children, empty-nesters, senior citizens, etc. Even one story, if you’re given enough time or space, can help your audience understand what other people are facing with food costs and how they’re dealing with it.
If you are writing an in-depth article or series, or doing a long-form TV or radio program, follow several people and families for a period of time to see how they are dealing with food costs. Be sure to include single people with a variety of incomes, in addition to families of various sizes and incomes. Also, include senior citizens who depend on Social Security for their primary income each month.
Show them at home, at the store, at work. Listen to them as they talk about the strain food inflation is having on them. Compare what they paid for food at home (groceries) and food away (e.g. restaurants, fast food) this week to what they paid three, six or twelve months ago. A lot of people buy with credit or debit cards, so they can show you their shopping receipts. That’s evidential in a reporting situation. It’s one thing to ‘remember’ paying more for an item. It’s another to ‘show’ the increase with printed receipts.
Graphics are powerful tools, so use them. Show your audience how the real rise in food prices is impacting individuals and families. Food prices usually go up higher and faster than the general ‘inflation’ rate. Graphics are a powerful tool in print, online, and television. I highly recommend using them.
Radio has the power of ‘sound.’ If you are in radio broadcasting, use natural sound to bolster your copy and the interviews you choose to use. You may not have graphics in your radio report, but you can always point your listeners to your station’s website where they can read your story and see the graphics that support your story.
Consider other ways to inform your audience about ways they can save money on food. You might include a weekly (or even daily) ‘how to stretch your food dollar’ segment on newscasts or in online or printed publications. Anchors and reporters can talk with county extension agents, nutrition experts, high school teachers and college professors who specialize in food preparation, etc. Interview students about how they can use what they’re learning in class to make a difference at home. You could also invite your audience to send their recommendations to you for stretching food dollars. Include the best ideas in your reports and interview some of the people who sent them to you.
You could also sponsor events in your community, and cover them for newscasts or publication, where your journalists and experts demonstrate how to make the best use of your audience’s food dollar.
Look for every way you can imagine to include ‘real people’ in Real Journalism. Everyone learns more that way. Become known as the station or publication that cares about the real needs of your audience.
Food and Wages
How do increases in food prices compare to increases in wages? This is another subject your audience will find important. Here are some news stories to consider —
The Bureau of Labor Statistics reported food inflation has risen at a faster rate than the broader Consumer Price Index over the previous 12 months. General inflation - as measured by CPI-U, which covers all urban areas - rose 3.2% for the 12-month period ending in July, while the cost of food rose 4.9% during the same period. Forbes
Rick Kiphut, of Atoka, Tennessee, says weekly groceries for himself, his wife and two teenage daughters cost more than $200, up from $150 a couple of years ago. Instead of eating steak two or three times a month, they’ve cut back to monthly.
Prices of some items, such as eggs, have come off their peak. But, he says, “They seem to have landed at a higher spot.”
And dinner at a casual restaurant costs more than $100, up from $50 to $70. So the family’s twice-weekly ritual has been sliced in half.
And with fuel and hotel costs elevated, the family decided to forgo their typical summer vacation to Florida beaches or a local campground.
Although Kiphut, a fire chief, says his 3% annual raise may finally be matching inflation, “I never caught up to that 9%” rise in prices last summer. USA Today
At its current pace, workers’ wages aren’t set to recover their loss of total purchasing power until at some point in the fourth quarter of 2024, according to Bankrate’s new Inflation To Wage Index.
The continued recovery has major implications for Americans’ personal finances, with many saving less for emergencies or retirement and taking on more credit card debt to handle inflation. Bankrate
Many economists, including those at the Federal Reserve, expect the US economy to tilt into a recession later in the year. A recession is defined as a broad economic downturn that typically includes a weak jobs market. That means wage and payroll growth would slow considerably, but not for every worker.
“If you think about a recession caused by rising interest rates, it won’t stop you from aging or needing a knee replacement, so there won’t be much of an impact on demand for health care,” said Llewellyn. “But it would have an effect on transportation, manufacturing, and other industries that are interest-rate sensitive.” CNN Business
Americans hate the economy because pay hasn't kept up with inflation — and it could stay that way until next year. In an August Quinnipiac survey of more than 1,800 US adults, 71% described the US economy as not so good or poor — 51% said they thought the economy was getting worse. Many other surveys have reflected a similar sentiment, fueling a discussion in economic circles about what could be driving the apparent disconnect.
One theory is that falling inflation-adjusted wages left many consumers worse off over the past few years. Plus, the stresses of dealing with inflation may have taken a toll of their own. Business Insider
If you are a journalist covering news outside the United States, here’s some information that may be helpful in your coverage —
The British Retail Consortium (BRC) reported overall food inflation rose 11.5% in August, down from 13.4% in July.
But annual growth in average total pay only grew by 8.2% from April to June, according to the latest data available from the Office for National Statistics (ONS). Sky News
HALIFAX - A report published Thursday says the rising costs of shelter and food in Nova Scotia have contributed to a large jump over the last year in what’s considered a living wage in the province. Info News Canada
Hunt said the government is on track to hit its target of halving inflation by the end of the year but suggested the rate of price rises could spike when the latest figures for August are published in September.
UK inflation reached more than 10% at the end of 2022 because of the soaring prices of goods and services ranging from energy and food to transport and clothing. The prime minister, Rishi Sunak, has pledged to halve inflation, suggesting it needs to fall to about 5% to meet the target.
However, prices have risen more during 2023 than expected by the Bank of England, which has raised interest rates at 14 consecutive meetings in an effort to tame inflation. The Guardian
Keep in mind that this is a story that has no end. As long as your audience continues to consume food you will have a story to report. You might even consider revisiting some of the same people you profiled for your first story — maybe a year later — to see how they’re doing and if they are handling the rising cost of food the same or differently. Follow-up stories of this importance demonstrates your interest in the real lives of real people — that’s Real Journalism!
Next Newsletter
Journalists need to understand everything they possibly can about how the economy will impact their audience. I’ll share some of the most important economic markers that can alert you to the potential for developing stories in next week’s edition of Real Journalism?
Comments and Questions Welcome
I hope these thoughts are helpful to you. Please share your comments and questions and I’ll respond as quickly as I can. If you like what we’re doing in this newsletter, please let your friends know about it so they can subscribe.
Newsletter Purpose
The purpose of this newsletter is to help people who work in the fields of journalism, media, and communications find ways to do their jobs that are personally fulfilling and helpful to others. I also want to help news consumers know how to find news sources they can trust.
