Under the Hood: Why It Feels Like Everything Costs More (Because It Does)
By Tim Carl
Today’s Under the Hood Spotlight
Welcome to Under the Hood, our exclusive Saturday series for Napa Valley Features paid subscribers.
Today’s Under the Hood Article Summary:
Grocery and restaurant prices have climbed sharply since 2019 — up roughly 30% and 40%, respectively — while real wages have barely grown. National and local data show that even as inflation cools, food costs remain locked at higher baselines, squeezing household budgets. Rising labor shortages, global fertilizer disruptions and new tariffs continue to push production and distribution costs higher. In regions like Napa, where the economy depends on discretionary income, these pressures compound the strain. The result is an economy where essentials cost more, earnings buy less and the margin for everyday living continues to narrow.
Beyond today’s discussion, we’re also diving into the latest data from our readers’ polls and providing insights from our economic dashboard, covering local Napa Valley, U.S. and global markets.
“What We’re Reading” features excerpts from recent articles offering a range of perspectives on topics shaping our community and the wider world. “Visuals That Caught Our Eye,” at the end, spotlights compelling charts and graphs that stood out this week.
“What We’re Reading”: Excerpts of the Day
“Making it more affordable to younger people will help to assure a continued audience.” – from Eric Asimov, in “What Can Be Done to Save the Ailing Wine Industry? Our Critic Has Thoughts,” The New York Times.
“This is the first time in 25 years that we have 30% of our grapes unsold.” – from John Balletto, in “California’s Wine Industry Is in Crisis,” The Wall Street Journal.
“ICE will never raid the Napa Valley — we have too many Trump supporters,” said a prominent Napa Valley winemaker who didn’t want his name used. “That’s why [the wine industry] is keeping silent.” – from an anonymous Napa Valley winemaker commenting to Napa Valley Features.
Breaking News: Napa County’s Type 02 count fell from a June 10 peak of 1,934 to 1,827 on Oct. 14 (-5.5%) while California declined from 6,867 to 6,556 (-4.5%). July and October drops were larger than last year in both Napa and statewide, signaling bigger nonrenewal batches. The California Department of Alcoholic Beverage Control says Type 02 licenses renew June 30 and nonrenewals often post in clusters weeks later, which may help explain the sharp weekly swings. Unless year-end issuances rebound, 2024/25 is on track to finish flat to down from 2023. (Source: Napa Valley Features weekly Type 02 database; California ABC).
