By Jody Stewart
Rising costs, supply shortages and staffing issues are making times difficult for local businesses. One local restaurant, Grand D’s has been closed for nearly a week due to staffing issues. Grand D’s said, “We are sorry for any inconvenience this may have caused but we miss ya’ll more than you know.”
Another local restaurant says they must look at invoices each time they get a delivery to make sure they are not losing money and almost always each invoice shows an increase in the cost of goods.
Local grocery shopper at the Piggly Wiggly Louis Smith says, “I try to buy the no name brand or the store brand to save money. I feel like each week my grocery bill is going up and I pretty much buy the same thing each week. I try turning my air up higher on my thermostat to save on my electric bill.”
Consumer studies show people are paying more for gas, food, rent and medical care including dental costs. Food prices alone are up 10.4% percent. Meats, poultry, fish and eggs prices are up by 14.1 % in Alabama. These increases are hitting small families and small businesses hard.
Studies say that the average Alabama household is now paying nearly $500 more per month to buy the same goods and services as this time last year.
Last month, Alabama was ranked number 7 in the nation where inflation is hitting consumers the hardest. Stephen Miller, an economist at Troy University, said Alabama is experiencing “The highest inflation since the early 80’s. That’s pretty significant. For many people who are adults today, they have no memory of higher inflation.”
Miller said we are “four to five times” over what would be viewed as normal inflation over the past several years.
It is not just the price of food that is increasing in the state. The U.S. Bureau of Labor Statistics also shows housing is up in Alabama by 7% and apparel is also up 7%.
Everyone is aware of the increase in gasoline prices which is one of the biggest drivers of the high inflation. Gasoline in Alabama is up 45%, compared to 44% nationwide.
Farmers are sharing in the hardships of inflation and shortages.
Jeremy & Jersey Owners of Jack O’ Lantern Lane Pumpkin Patch, “ After a lot of prayer and careful consideration, it is with heavy hearts to inform y’all that we will not be opening for the 2022 season. Due to an increase in living and product costs over the last few months along with our goal to keep an affordable family fun experience, we felt it would be best not to open this season rather than considerably raise our prices.”
Local farmers are dealing with a fertilizer shortage, forcing prices to skyrocket.
The Alabama Farmers Federations (ALFA) says there’s several reasons for the shortage.
ALFA says almost half of fertilizer, originates from outside countries. A large exporter is Russia, and the Russia-Ukraine war is slowing down exports.
That, along with supply chain issues and labor shortages, is causing high fertilizer prices. Farmers are paying around two to two and a half more times more for fertilizer now.
Alfa say’s a ton of fertilizer last year was around $500, this year it is north of $1000 for that same quantity of fertilizer.
Troy University’s Stephen Miller went on to explain what causes Inflation. Inflation is often described as too much money chasing too few goods.
“When you have more money chasing the same amount of goods and services… that means something has to adjust in terms of the market,” Miller said. “And what has to adjust is prices have to go up.”
Miller said a more complicated question is how that money entered the economy. He said the massive stimulus bills and checks sent out during the pandemic played a role.
“It’s a combination of the monetary policy and the stimulus spending and the increase in extended unemployment benefits and all the ways money found its way into people’s hands over the following year and a half,” Miller said.