The signs are everywhere: Food prices are rising, homes are being snatched off the market, shipping rates are way up, and utility bills are becoming more and more expensive with every month that passes. Inflation is here, and it’s affecting everyone.
Mark Maguire, who owns a restaurant in North Dallas, Texas, has had to raise his menu prices twice since March, he told the Washington Post. His suppliers hiked the cost of foods such as chicken, beef, and cooking oil, and he had to raise wages just to find people willing to work.
Eateries across the country are experiencing similar problems. Even large national chains, such as Chipotle Mexican Grill and Cracker Barrel Old Country Store, have raised their menu prices to make up for the higher costs of labor, commodities, and transportation.
Ultimately, it’s the consumer who gets stuck with the worst of it. In May, U.S. consumer prices had surged by 5% from the year before, marking the highest annual inflation rate in nearly 13 years. Prices for used cars and trucks increased by 7.3% from May 2020 to May 2021, and the costs for furniture, airline fares, and clothing followed close behind.
Some of this was to be expected, given the federal government’s decision to pump trillions of dollars into the economy during the coronavirus pandemic. And there’s an argument to be made that the rising costs we are now experiencing would not be that big of a problem had they been accompanied by significant gains in wages. But they weren’t. So now, the public is left with higher grocery and utility bills and very little wiggle room.
The Biden administration is trying to convince people that the inflationary trends are just temporary. But right now, the numbers suggest otherwise, so let’s hope everyone held on to those stimulus checks. They’re going to need them.
