Grocery prices increased by 14% in August, according to the U.S. government. This is the highest annual increase since March 1979, with inflation being quoted as the main cause, according to CNN.

While it is considered normal for prices to go up at around 2% or 3% a year, wages haven’t kept pace with the increases. Demand for food isn’t flexible, meaning that shoppers are having to make changes in their diets and spending habits to cope with rising costs.

With wages failing to rise at the same pace, economists are warning about an imminent cost of living crisis. The latest dunnhumby Consumer Trends Tracker (CTT), a global leader in Customer Data Science, found that an overwhelming majority of consumers are struggling financially.

The report states that 55% of consumers surveyed are not getting enough of the food they want to eat, with 18% not getting enough at all. 

In addition, 31% of households have skipped or reduced the size of their meals in the last 12 months due to a lack of financial resources. This represents a 5% increase since the last CTT survey published in May-June 2022.

Producers aren’t “seeing any end to inflation in terms of their labor and commodities cost,” said KK Davey, the president of client engagement at market research company IRI. The firm expects food inflation to rise between 5% and 10% next year.

Executives at large food manufacturers and analysts project inflation to remain at this level for the rest of 2022, the outlet reported.