DETROIT (WXYZ) — Treasury Secretary Janet Yellen visited the city Wednesday with new economic indicators. This indicates that inflation continues to fall, but not as fast as most expected.
The price of eating out has gone up, and we're learning what that means this Valentine's Day.
“The trend here is that inflation is definitely coming down,” Yellen said.
Yellen addressed Gov. Gretchen Whitmer and the Detroit Economic Club on Wednesday.
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While overall inflation is trending down, that's not the case for many people in metro Detroit.
“We're leaving the house less. We're stocking up on groceries.” One consumer we asked said:
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Still, Yellen insists that wages are rising.
“If you look at the median U.S. worker now and compare it to 2019, the typical worker can buy the same basket of goods and services, wages have risen enough to make that possible, There's $1,400 left.”
We spoke to Michelle Choice, sales manager at a Brazilian steakhouse in Troy. She explained the importance of Valentine's Day.
“This is definitely one of the big holidays of the year for everyone in the restaurant industry,” Choice said. “We’re incredibly lucky to see a full house on a day like today.”
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But she says she wouldn't be surprised to hear that spending on eating out increased by 5.1% year-over-year.
“We can feel a shift in when and how they spend their money because family dinners don't happen as often as they used to.” Choice said.
“You can't afford not to go out to eat because it's Valentine's Day, right? But this is a one-time event, and that's okay. But if you go out to eat frequently, you'll feel the pressure of inflation,” says Wayne State University's Economics Professor of Economics. Assistant Professor Albert Zhu said.
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That's true, he says, and wages are rising to offset rising costs, and prices are even falling in some areas.
“In fact, prices have fallen in the commodity sector. In Detroit, for example, the automobile industry is a major industry supporting the entire region. And the automobile market has already fallen, both in the new and used car markets. “We're starting,” Zhu said.
We asked Mr. Zhu how he felt.
“As an economist, I don't worry too much about this number,” Zhu said.
