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Consumers spent more than $86.6 billion at restaurants in the month of January, up 24% compared to the same month in 2022, per the latest data from the U.S. Census Bureau, YahooFinance.com reported. Spending on groceries, beer, wine, and liquor were up 5.3%, totaling about $78.9 billion last month. This comes as the cost of food away from home outpaced the cost of buying groceries. Per the Bureau of Labor Statistics' (BLS) January Consumer Price Index (CPI), the cost of groceries were up 11.8% year-over-year, while dining away from home was up 8.2%. Despite menu price increases to offset inflation at many restaurants and fast food chains, customers seem to be turning a blind eye to rising prices after being cooped up during COVID. According to the Mastercard Spending Pulse survey, U.S. consumers said dining out is a priority, with demand for it growing 24.2% year over year.

The end of federal pandemic aid is putting many Americans and businesses under mounting financial pressure, leading to a spike in bankruptcies, CBSNews.com reported. Total bankruptcy filings in January were 31,087, up 19% from a year ago, according to data from Epiq Bankruptcy Analytics. The surge in filings comes as rising interest rates and high inflation continue to stress household budgets after government pandemic aid programs expired. The federal government sent $817 billion in stimulus payments to Americans, according to a New York Times estimate, but that lifeline ended in March 2021. Congress similarly doled out $800 billion in Paycheck Protection loans to companies large and small before that program ended in May 2021. "There's no cash coming in from the government anymore," Amy Quackenboss, executive director at the American Bankruptcy Institute, told CBS MoneyWatch. "Some people are finally experiencing that economic crunch. They're having to pay their mortgage, their car payments. There are several people who haven't been able to weather that storm." Difficulty hiring in a tight labor market, the ongoing war in Ukraine and fears of a recession have also prompted some companies to file for bankruptcy, Quackenboss said. That said, while bankruptcies have increased, they still haven't reached pre-pandemic levels, she added.

U.S. consumer prices accelerated in January as Americans continued to be burdened by higher costs for rental housing and food, suggesting that the Federal Reserve was far from pausing its interest rate hiking campaign, Reuters reported. The report from the Labor Department on Tuesday also showed the pace of disinflation in the annual consumer price measures slowing last month. Still, the continued gradual slowdown in inflation likely keeps the Fed on a moderate interest rate hiking path. Sticky inflation and a stubbornly tight labor market have led some economists to expect that the U.S. central bank could continue hiking rates through summer. The consumer price index increased 0.5% last month after gaining 0.1% in December. A 0.7% rise in the cost of shelter, which mostly reflected rents, accounted for nearly half of the monthly increase in the CPI. Inflation was also boosted by rising gasoline prices, which rebounded 2.4% after declining for two straight months. Americans also paid more for natural gas and electricity. There were also increases in prices of food, which rose 0.5% after advancing 0.4% in December. The cost of food consumed at home climbed 0.4%, lifted by rising prices for meat, fish and eggs. Prices for cereals and bakery goods rose as did nonalcoholic beverages, but fruits and vegetables cost less.

The Biden administration’s decision to end the COVID-19 national emergency declaration could undermine a central justification for its student-debt forgiveness plan as the Supreme Court prepares to decide the fate of the program, the Wall Street Journal reported. Mr. Biden outlined a plan in August to cancel up to $20,000 in federal student loan debt for borrowers making under $125,000 a year. Unable to pass the plan in Congress, the White House relied on expanded executive powers tied to the emergency declaration to enact the plan, and Mr. Biden said his intent was to “address the financial harms of the pandemic.” Republican officials from six states sued to stop the plan on the grounds that it was an unlawful use of presidential authority that would harm state tax revenues. Individual borrowers backed by conservative groups also sued, arguing they didn’t have a chance to weigh in on the forgiveness program’s eligibility criteria. Lower courts blocked the plan from being implemented. The Supreme Court will hear arguments in the case on Feb. 28, with a ruling expected by this summer.