The Sunshine State has been fighting the economic windmills lately.
First, the state suffered repercussions of the pandemic, then inflation, then the war in Europe, then the energy crisis, and finally, food shortages. Even Disney is thinking about leaving Florida. Is there an end to these woes? It seems like we're one incident short of aliens paying us a visit.
But let's focus on the economic reality that's upon us. In just 7 days, people from all around the country will flock to their favorite shops to stock up on just about everything. July 4th celebration is one of the biggest holidays in Florida. And economists expect inflation to explode in the upcoming days.
Inflation is a fancy way of saying that prices are trending up. This is usually expected in a healthy economy, and Federal Reserve expects a 2% inflation yearly.
However, according to the consumer price index (CPI), inflation of everyday goods averaged 8.6% in the United States. That means that the price of milk, bread, and similar goods is about 8.6% higher compared to last year.
This trend is much worse in Florida.
Prices of just about anything in the Tampa - St. Petersburg - Clearwater region jumped by 11.3% in May. Miami has become one of the most unaffordable cities on the planet due to the high growth of inflation.
However, inflation wouldn't be such an issue if it wasn't packaged with an entire feat of economic problems:
- Food shortages
- Limited growth
- Supply chain disruptions
If you pair rapidly rising prices with limited growth and a complicated supply chain, you'll get Florida today.
But, it gets worse
Food shortages are already a problem across different counties in Florida.
But an even worse shortage (a shortage of everything) is creeping up on Floridians.
In seven days, families and individuals will flock to their favorite supermarkets, shops, and gas stations to stock up on supplies for the July 4th celebration.
Floridians rarely ever come together as they do on July 4th. Thanksgiving and Christmas are only two similar holidays when people carelessly spend as they do on July 4th.
So, we can expect an absolute explosion in demand for everything. With an explosion in demand comes an explosion in inflation.
Sadly, this year will be different. Many will be left frustrated by the soaring prices, shortages of their favorite foods and beverages, and the seemingly neverending highway congestion. Barbecues might look somewhat different, with fewer friends and less food around.
Are you worried about the soaring prices?
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