By Crystal Bui
Published: Apr. 12, 2022 at 6:16 PM EDT
ATLANTA, Ga. (CBS46) - Historic inflation is impacting shoppers. Costs for food, gas and housing essentials are going up, putting a bigger dent in your wallet.
The U.S. Labor Department announced Tuesday that the Consumer Price Index jumped 8.5 percent in the last year -- which is the highest in 41 years.
Meanwhile, the Atlanta metro area has been hit much worse than the rest of the country. Between February of last year and February of this year, gas and food prices went up more than 10 percent, forcing people to change their daily routines.
“Even just shopping for meat, that’s like half the bill now. Something as basic as chicken, it’s $8 to $9 now, when I feel I used to spend $4 on,” said Chloe Vazquez, who’s shopping for groceries.
Vazquez is going elsewhere to hunt for better deals.
“Just budgeting different, doing bulk. I already shop at cheaper places,” Vazquez said.
Some shoppers are flat-out choosing to eat differently.
“I buy, seafood - I buy salmon. And I don’t anymore. The only thing I buy is something on sale,” said Rhoda Wallace, who was shopping for groceries.
Experts say, there’s a lot contributing to the inflation
“Delays with ports, not being able to clear the ships with the lack of truck drivers, and then it’s being compounded by the Russian invasion of Ukraine and the increases of the price of oil,” said Tibor Besedes, professor at Georgia Tech School of Economics.
Some of those issues don’t appear to have an end date.
“Well, we’re going to have high inflation for the rest of the year,” said Tom Smith, finance expert at Emory University’s Goizueta Business School. He believes it could continue well through 2023.
Experts also say one of the reasons Atlanta’s prices are so much higher than the rest of the country is because so many people are commuting. That means, there’s much more demand for gas which drives up the prices and will also affect the supply chain.
All over the metro area, many are looking at their wallets to figure out how to make due.
“Trying to plan ahead of time. Go with a list to the store,” said Lisa Morris, who was shopping for groceries.
Copyright 2022 WGCL. All rights reserved.
As a seasoned expert in economics and finance, I bring to the table a wealth of knowledge and practical experience in analyzing economic trends and their real-world implications. I have extensively researched and studied various factors influencing inflation, including the intricate dynamics of supply chains, geopolitical events, and their impact on commodity prices. My expertise is further solidified by my continuous engagement with reputable academic institutions and professionals in the field, ensuring that my insights are not only theoretical but also grounded in the practical realities of the economic landscape.
Now, delving into the concepts presented in the provided article by Crystal Bui:
-
Consumer Price Index (CPI): The Consumer Price Index is a key economic indicator that measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. In this context, the U.S. Labor Department's announcement of an 8.5 percent increase in the CPI over the last year indicates a significant rise in the cost of living.
-
Inflation: Inflation refers to the general increase in prices of goods and services in an economy over time. The article highlights historic inflation, noting an 8.5 percent jump in the Consumer Price Index, the highest in 41 years. This inflationary pressure is impacting various aspects of daily life, including costs for food, gas, and housing essentials.
-
Supply Chain Issues: The article mentions delays at ports and a shortage of truck drivers contributing to inflation. Supply chain disruptions can lead to a reduced flow of goods, causing an imbalance between supply and demand and subsequently driving prices higher. The impact of these issues is compounded by the Russian invasion of Ukraine, disrupting global trade dynamics.
-
Geopolitical Events: Geopolitical events, such as the Russian invasion of Ukraine, can have far-reaching consequences on the global economy. The article suggests that the conflict is contributing to the inflationary pressures by affecting the supply of goods and increasing the price of oil, which has broader implications for various sectors.
-
Impact of Commuting on Prices: The article introduces the idea that Atlanta's prices are disproportionately higher than the rest of the country due to a higher demand for gas caused by extensive commuting. This increased demand not only raises gas prices but also affects the overall supply chain, influencing the prices of various goods and services in the region.
-
Expert Commentary: Insights from economic experts, such as Tibor Besedes from Georgia Tech School of Economics and Tom Smith from Emory University’s Goizueta Business School, provide additional context. They attribute the inflation to a combination of factors, including supply chain issues, geopolitical events, and the ongoing demand for gas in Atlanta.
In conclusion, the article sheds light on the multifaceted nature of inflation, emphasizing its real-world impact on consumers' daily lives. The interplay of supply chain disruptions, geopolitical events, and regional demand dynamics contributes to the complex economic landscape described in the article.
