ROCHESTER, N.Y. (WROC) — The new Consumer Price Index report out by the Labor Department is showing a historic high for inflation: 8.5%. It’s the fastest annual gain since 1981, and rising prices are everywhere, from the gas pumps to the grocery shelves.
“To be able to say it’s one thing, would be inaccurate,” said Steven Carnovale, a supply chain professor with the Rochester Institute of Technology.
Carnovale says what’s going on now with high prices is a confluence of multiple things. Historic inflation is one. “All of the things we buy on a daily basis absolutely those inflationary pressures they hit.”
Carnovale says he’s already $300-$400 over budget on his household grocery bills this month. “That’s crazy, it’s wild, but it’s happening,” he said.
Another challenge? Continued kinks in the supply chain. “Any time you interrupt the flow of goods coming into a channel, you necessarily decrease the supply,” he says.
And gas prices, already high before Russia’s war on Ukraine, are impacting prices on everything as goods are transported locally and across the US.
Jesse Cramer with Cobblestone Capital Advisors says it also comes down to labor shortages. “So you almost have a double whammy: not only are the prices going up but there also might not be the help,” he says.
Prices rising so fast, Angel Lopez says out shopping, he sees one price on the rack, and another when it’s time to pay. “Once you get to the register, it’s a totally different story, it’s higher than what you expect. And sometimes you can’t even afford that,” said Lopez.
Lindsay Richardson says the higher prices aren’t a huge impact, yet. “I’m thankfully working overtime at the moment for my job, so I’m able to make ends meet.”
Chantile Williams says the higher price impact actually means time away from loved ones. “I’m a nurse, so it makes it a little easier so I can pick up more hours, but then that’s time away from family.”
Cramer says we’re looking at a ripple effect right now across the entire economy. But he says, things will settle in the months and years ahead. “We won’t be feeling it then. The ripples will decay,” he says.