Prices for food, home appliances, cars and gasoline are rising — and the pandemic isn’t the only reason. Demand for these items increased as the country opened up and businesses are now having a hard time keeping up.
Climate plays a role in increasing food prices.
Sean Coary, assistant professor, said: “The west is literally on fire and they’re facing a huge drought. So a lot of agricultural produce, whether it’s blueberries, and so on. or strawberries, prices just go up there because of a lack of supply,” Sean Coary, assistant professor. in marketing at Loyola’s Quinlan School of Business. “Additionally, Brazil is also experiencing its biggest drought in more than a century, driving up prices for soybeans, corn and coffee.”
That increases the price of food at the grocery store and when you eat out.
“Restaurants are really facing a double crisis right now with rising food prices, rising input costs, and rising wages, and as restaurants are forced to close and can only selling takeout, they got really stuck in the end, so their first instinct was to pass that cost on to the consumer,” Coary added.
Restaurants and other industries are also paying higher wages to attract workers. A survey conducted earlier this month by Challenger found that 95% of companies are currently hiring and 85% are experiencing labor shortages. Many in the service industry switched careers after the shutdown and restrictions during the pandemic. Higher wages are often passed on to consumers.
Oil production cuts due to low demand during the pandemic caused prices to rise 45% year over year and COVID-19 caused supply chain issues affecting the auto industry.
“Lack of semiconductors goes into new cars, so the production and sales of new cars fall. So people don’t trade in their used cards. So people who want to buy cars are already in the market. used are hard to find,” said Thomas Mondschean, a professor of economics at DePaul’s Driehaus College of Business.
Experts told I-Team there could be a drop in prices on products that have recently surged, as early as the first quarter of next year, including gasoline.
Mondschean added: “More countries are vaccinating, so more countries are returning to economic recovery. “So it will take some time for supply and demand to get back in sync, but it will happen.”
Some experts think inflation will continue, but not at the same rate we are seeing.
Meanwhile, there are apps that can help you find cheap gas prices in your area and save on food. Don’t forget to use coupons and make a list of what you want at the grocery store before you go in.
Gas prices app to help you find the best deals
– Find nearby gas stations and prices
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https://abc7chicago.com/inflation-rate-2021-food-prices-rising/10905715/ | Inflation rate 2021: Why food, gas prices are rising | Apps to help you find the best deals