Did your latest grocery run leave you baffled?
Experts say that the price of just about everything has increased. You name it. It's more expensive now. And new prices are here to stay.
Some food items were hit more than others.
The above items have gone up by an estimated 1% in Florida since September.
Inflation takes core prices into account
Economists collect data such as the consumer price index (CPI) to determine the overall inflation rate. If the rate is high enough, your mortgage, car payments, and pretty much everything will soar in prices. Federal Reserve Board (Fed) decided to take action on this data. Once FED concludes the economy is overheating and the prices are getting out of control, they tend to increase the interest rate at which banks borrow money. Once the interest rate soars, the economy usually slows down. This means two things:
- Fewer jobs
- Less money
The above scenario is an ideal economic model. Reality is more complex. The United States is dealing with an unprecedented supply-line crisis. In addition to soaring prices, fewer people are willing to take on crucial jobs.
- Fewer truck drives
- Less supermarket staff
- Poorer hospitality service
Some blame COVID. Others point fingers at Biden or Trump. The reality is that majority of workers refuse to work essential jobs at poverty wages.
Series of unfortunate events also contributed to the current fiasco
- Devastating wet season affected crops in 2019.
- Global pandemic halted business activity in 2020.
When you take everything into account, it's a miracle supermarket have stayed this resilient. If nothing changes, the prices will continue to soar.
Are you concerned about recent price hikes in Florida?
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