Consider a bowl of peanut butter, or maybe a truckload of it. If you’re running a large food bank, clarify inflation.
In 2019, Community FoodShare spent about 40 40,000 on a truck full of peanut butter. In July, the same truckload was valued at $ 47,000, said Julia McGee, a spokeswoman for the Louisville-based Food Bank.
He said that in addition to paying more for peanut butter, the food bank had reduced shipping due to labor shortages and gas prices, which are about 1. 1.25 per gallon more expensive than a year ago. Paid more for
“In today’s market, drivers can tell their price,” McGee said.
Community Food Share managed to keep the main shelf on its shelf, but the organization carried the burden of a 6.6 percent price increase between August 2019 and August 2020, according to the September Labor Consumer Price Index prepared by the US Department of Labor.
Almost everything else that a person buys has increased in price over the same period. Beef? 16.6% increase salad garnish? 8.7% increase dining room furniture? Up to 12% Clothes? 11.9% increase
Blame the epidemic.
“The simplest explanation is that everyone has been shut down for a year and not spending as much as they normally would and now we all decided at the same time that we would spend money on things. Want to do. ” Center for Consumer Financial Decision Research at Boulder University in Colorado. “When we all decide to do it at the same time, the problem is that the economy needs to give us all that stuff. We don’t have the unlimited capacity to do that.
With rising prices, people are worried about their household budgets, and they are debating with economists how much inflation will be before prices fall. The Consumer Report released on September 14 shows that between August 2020 and August 2021, the All Item Index increased by 5.3%.
But economists note that the rising cost of living has slowed slightly since July, meaning that things are still more expensive but prices are not rising as fast as last month.
Last month, Federal Reserve officials predicted that inflation would continue until 2021 and then slow next year as epidemics eased.
According to the Bureau of Labor Statistics, prices of all commodities in the Denver area rose 3.5 percent in July. Energy prices, including petrol, rose the most in 12 months, to 24.3 percent. The AAA reported Wednesday that the average price of a gallon of regular gas in Colorado was $ 3.55, up from 2. 2.82 a year earlier.
According to the Bureau of Labor Statistics, food prices rose 2.6 percent from July 2020 to July 2021, and everything else rose 2.4 percent.
When gas prices rise, it affects everything.
“Even the apples you pick up in your supermarket will cost some energy because a truck had to take them to your grocery store,” Coxon said.
In community food share, the effect of inflation is twofold.
Food Bank works with 40 nonprofit organizations in Boulder and Bromfield counties. McGee said it receives most of its food through donations, but the agency also buys food directly from manufacturers. However, the epidemic destroyed the supply chain and grocery stores were short of donations, forcing community food sharers to double the amount of food they bought directly. This year’s budget will buy more than لاکھ 1 million worth of food.
Not only does it cost more to buy food in stock pantries, but more and more people need help putting groceries in their homes.
“Rising inflation forces many people to need help for the first time,” McGee said.
The United States has experienced relatively low inflation over the past five years, but the trend has changed dramatically over the past year, said McCluse, a finance professor at the University of Denver’s Daniels College of Business.
“It’s prominent at grocery stores. It’s prominent at gas pumps. It’s noticeable for service providers.
When the state closed restaurants, malls and movie theaters in March 2020 at the onset of the epidemic, people stopped spending money. And they were slow to open their wallets. Meanwhile, families received financial stimulus payments even if they remained employed. For many, this has resulted in obese bank accounts.
So when vaccines became common and cases of COVID-19 appeared to be declining, people were willing to spend. But there weren’t enough new cars, bedroom furniture and clothes.
“It takes some time for supply to catch up with demand,” Klose said. “What you get when demand exceeds supply is that you get rising prices.”
“The epidemic has created a strange economic crisis,” he said. On the one hand, millions of people lost their jobs and relied on unemployment to achieve their goals. On the other hand, people have kept their jobs but received federal stimulus payments to cut costs, excluding holidays, concerts and sports programs. They saw their bank accounts grow.
But at some point, this extra cash will run out and demand for new televisions, furniture and clothing will decrease. At the moment, prices should remain stable, Klaus said.
But economists aren’t sure when that will happen.
“Everything will take some time to move. The economy will not return as quickly as it did in 2019 and the first half of 2020. It will take some time and unfortunately the second uncertainty is what will happen to COVID. This makes prediction and planning more difficult.
Meanwhile, those struggling to pay their bills will find ways to meet the end.
McGee said he recently met a retired, homecoming woman who receives food through one of his senior programs. She told McGee that she was saving the benefits of her monthly food stamp to buy beef roast. The woman received 16 16 a month through SNAP and told McGee that she could spend 32 32 on a roast if she saved two months.
He planned to break it into pieces and freeze it to make it last.
“That’s the reality for a lot of people,” McGee said.