hello again, everyone. thanks for joining me. i m fredricka whitfield. we begin with california facing a severe weather threat yet again right now. 25 million people are under flood watches. some areas saw more than six times the normal rainfall in just the last two weeks. today s storms raising concerns for more flooding and possibly landslides. cnn meteorologist allison chinchar is tracking the storm for us. also cnn s natasha chen is in fairfax, california, where we begin with you. what are you seeing? all right. we don t have audio of natasha. we ll try and work that out. it s not your television sets. let s go to you, allison. what is california bracing for? they ve already been through so much. they have. they re bracing for two more rounds, one that is currently ongoing and the next round that arrives 24 hours from now with not much of a break in between. the first round already here. you can see most of the real heavy rain and snow is across portions of northern and
pulling back on their discretionary spending and changing what they buy. cnn business consumer reporter nathaniel myerson joins me with details. macy s reported weak earnings and slashed its forecast for the year. what does that tell you? consumers are pulling back right now and they re being much more careful about how they re shopping and what they re spending on. you look at macy s. sales last quarter dropped 8.7% from a year ago. that s a big drop. the company said people were buying less clothing and spending more on essentials and food and also spending more on travel. we have most of the wardrobes we need, but we re still taking trips and doing some of the things we weren t able to do early in the pandemic. the ceo called it a reallocation of consumer spending.
went down by 0.1% last month. that s from the latest figures in the consumer price index. so, how does that translate to the goods americans are buying? cnn business consumer reporter nathaniel myerson is here to explain. good to see you. so, what s still getting pricier and what s getting cheaper? reporter: right, fredricka. so, we have sticker shock on egg prices right now. egg prices were up 11% monthly and 60% annually in december, and it s leading to record profits at the country s largest egg producer, cal maine foods. but luckily there are a few things getting cheaper. in the beef aisle, beef and veal prices have dropped 3.1%, bacon down 3.7%. pork roasts are down 1.8% annually. in the beginning of the