r/Economics • u/Technical_Ostrich_47 • 17h ago

News US inflation rises more than expected ahead of midterm elections (3.7%)

https://www.bbc.com/news/articles/cwy8lx3pg4k2o
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u/RIP_Soulja_Slim 14h ago

Yah I posted some numbers below but this ain't inflation anymore, it's straight inelastic demand. Their price increases far outpace fast food as a category, dining as a category, and inflation broadly. This is just good ol supply and demand, they have a supply of tacos, moderately buzzed people have the demand.

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u/thewimsey 6h ago

To some extent, that's because the absolute cost is still fairly low compared to other fast food places.

A beef burrito supreme is $5.69. 10 years ago, it was $3.19.

That's a large percentage increase (~80%), but in the absolute sense you're still getting a decent-for-taco-bell burrito for under $6.