❓WHAT HAPPENED: New data from DoorDash’s State of Local Commerce report highlights significant economic improvements, including lower inflation and rising wages.
👤WHO WAS INVOLVED: President Donald J. Trump’s economic policies, DoorDash, and American consumers and businesses.
📍WHEN & WHERE: The data covers the past year, with an emphasis on trends from March to September across various U.S. cities.
💬KEY QUOTE: “Consumers are buying more from businesses in their communities.” – DoorDash Report
🎯IMPACT: Families are seeing lower prices on essentials, wage growth is outpacing costs, and fewer businesses are closing nationwide.
New data suggests the overall consumer economy continues to remain robust despite disruptions in some sectors over the last few months. The latest DoorDash State of Local Commerce report confirms that inflation has largely been brought under control and that consumer prices are beginning to recede from their highs under the former Biden government. Additionally, the report suggests that as prices fall, wages are also increasing, a positive sign for American workers, as it should lead to increased purchasing power.
The Breakfast Basics Index—which measures the price of three eggs, a glass of milk, a bagel, and an avocado—shows a decrease of 14 percent since March, and a 1.7 percent decline over the past 12 months. The Everyday Essentials Index—which measures home essentials like toothpaste, shampoo, toilet paper, laundry detergent, analgesic medication, and diapers—also shows a price decline over the last year.
According to the data, prices for other items, including cheese, cereals, fresh fruits, frozen meals, packaged meals, condiments, batteries, electronics, toys, and vitamins, have also fallen.
Importantly, the decline in prices comes hand in hand with a surge in national wage growth. This is especially notable when compared to restaurant prices, which have also decreased, making dining out once again increasingly affordable for American families.
The data also reveals that 56 percent of consumers report seeing fewer local businesses shutter over the last 12 months. DoorDash notes that the overall food spend has jumped by about five percent since last year—faster than prices have risen, suggesting “consumers are buying more from businesses in their communities.”
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