Gov. Glenn Youngkin stopped by the Safeway grocery store at Bradlee Shopping Center Thursday to talk about how inflation has affected the cost of groceries.
Over the past year, the consumer price index hit 7%, the highest rate of increase since the early 1980s. Inflation has affected the price of everything from clothes to electronics to food.
"Consumer wallets are feeling pricing pressures and in turn the Fed has signaled a more hawkish approach. But the question remains if the Fed will pick up the pace given inflation is seemingly here to stay, at least in the medium-term,” Mike Loewengart, managing director for investment strategy at E-Trade, told CNBC.
Youngkin has several plans in place to reduce costs for Virginia consumers, including eliminating taxes on groceries. The reduction in tax revenue from the state would be offset by consumer spending elsewhere. “We have had a lot higher tax revenue and receipts because there’s been a lot more taxes,” Youngkin said Thursday in Alexandria. “There are extraordinary amounts of money in the system. We can afford this.”
The state collects about $500 million in grocery taxes per year, charging 2.5% in tax for most groceries and personal hygiene items.
