Spending on Super Bowl food is expected to reach a record even in the face of persisting inflation.
Wells Fargo economists said while consumers are still battling food inflation that rose 1.3% in December year over year, the boost in job growth has given them added spending power.
They pointed to how U.S. companies hired approximately 2.4 million more workers last month compared to the same time a year before. The report, lead by Wells Fargo Chief Agricultural Economist Dr. Michael Swanson, cited how wage growth also rose by 4.5% in January from the same time a year ago, boosting hourly wages to $29.57 per hour.
US JOB GROWTH UNEXPECTEDLY JUMPS IN JANUARY AS ECONOMY ADDS 353,000 NEW POSITIONS
Data released Friday from the Labor Department's monthly payroll report showed that employers added 353,000 jobs in January, which surpassed expectations by Refinitiv economists.
Friday's news will make Super Bowl spending even more robust and wide-spread, according to Swanson.
"The single biggest economic factor for most Americans is ‘do I have a job or could I get one?'," Swanson said, adding that "everyone might want more pay or a different set of responsibilities, but employment is the economic salve."
Coupled with wage growth, economists also noted that lower prices on certain foods will spur spending.
The cost of fresh and frozen wings are sitting between $3.26 and $3.17 per pound, respectively, according to data from early January.
Compared to a year ago, prices for fresh and frozen wings are down 5% and 11%, respectively, the data showed.
This drop comes despite "a turbulent year for the chicken industry, with high feed costs and outbreaks of Highly Pathogenic Avian Influenza (HPAI) challenging producers," according to the report.
The report noted there had been record low cattle, which caused "record high retail prices." While those prices have eased, they are still well above last year.
In fact, beef is expected to "cost consumers more than ever," the report said.
For sirloin steak, the four-week average price through early January 2024 was $9.35 per lb. That is up 2.3% from this time last year.
The most recent four-week average price for ground beef was $4.25 per lb, which is up almost 12% from the same time the year before.
For shrimp, the four-week average in early January was $8.84 per lb., which is down 6.4% year over year.
As of the end of December, tortilla chips were up 6% compared to the same time a year ago. Meanwhile, potato chips were up 5%.
The report underscored that labor and packaging are big factors in those costs and that it's a good year to seek out alternative labels fighting for business.
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As of the end of December, beer prices were averaging $1.75 for a pint, which is up 0.7% compared to a year earlier.
Meanwhile, soft drinks in a 12-ounce can were priced at $0.57 at the end of December, which is up 4.8% from the year prior.
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However, the same soft drinks in a 2-liter bottle sat at $2.11, which is down 0.8% from the prior year.
"It should be noted that soft drinks as a category have seen the highest food inflation spike since the start of COVID in 2020," the report said.
The 12-ounce can category was up 57%, and the 2-liter bottle category increased by 33% since that time, according to the data.
