ESCALON, Calif. — To anyone who has stepped foot in a grocery store lately, it's no secret prices continue to rise. In fact, inflation year over year jumped 7%, according to the Bureau of Labor Statistics and the Consumer Price Index.
"It's a continuing supply chain issue all along that process. If it's agricultural products from the field all the way to the grocery store, there are several different parts in that chain that just have not recovered," said Lewis Gale, University of the Pacific Economics Professor and Interim Director of the Eberhardt School of Business in Stockton.
Meats, poultry, fish and eggs are up 12.5%. Fruits and vegetables are up 5%. Furniture and bedding have increased 13.8% Even used cars and trucks soared a whopping 37.3%.
At Mar-Val's Main Street Market in Escalon, Dawna Robinson shops for groceries three times a week. She shops for both for herself and her in-laws, and like many, she has noticed the steady rise of prices at the store.
"They eat a lot of breakfast foods, so bacon is one thing that has gone up lately," Robinson said.
She added that it is "scary for people living on a limited budget."
The manager told ABC10 companies supplying the store are short staffed because workers are sick with COVID-19.
Professor Gale says it's a classic supply and demand situation. He says the stimulus dollars put into consumers pockets to spend has spiked demand.
"Unfortunately, those goods are not at the same production level, not at the same inventory level," Gale added.
Shopper John Kirkpatrick sees it first hand when he shops once a week.
"It's a little crazy. There's supply chain issues and all that stuff," Kirkpatrick said.
Bottom line, until the COVID surge eases and employees can return to work, people should hold on for an economic rollercoaster ride.
"We're going to see these fluctuations kind of go on for a good part of this year," Gale said.
Gale also says when you see the prices increasing, we are going to see producers increasing their production. But, he adds that too will take time.
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