How is people buying fewer groceries good for the economy?

The economy has gotten so tight that people are cutting back on food: a new survey finds grocery sales down last month compared to last year.

The global management consulting firm Bain & Company found per-unit sales of groceries down nearly two percent. Everyone needs to eat, so is this a sign of a larger problem?

"Well, it's not a good sign," said LSU New Orleans economist Dr. Walter "Dub" Lane. "It's certainly an indication of the prices of groceries are up by 33 percent."

Lane says higher gas prices caused by the U.S. war on Iran... as well as Russia' war on Ukraine, is also cutting into people's budgets.

The silver lining, said Lane, is grocers are already creating deals, meaning lower prices, to try and get their customers back.

"Sellers are starting to feel the pressure," Lane said. "The people are selling less and they are looking for ways to offer a few bargains or other incentives."