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Supply chain and labor issues create higher prices in grocery store

Published: Nov. 22, 2021 at 1:03 PM CST
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CEDAR RAPIDS, Iowa (KCRG) - Consumer prices increased 6.2% percent in October 2021 compared to October 2020, which is the biggest inflation increase in more than 30 years.

Those numbers mean a wide range of products including gas, food and energy cost more money. Mike Goetz, who is the co-owner of Family Foods in Tipton, said higher prices in his grocery store are coming from supply chain and labor issues.

He said employers are paying more to attract and retain employees. Goetz said he’s also spending more money to keep certain products on the shelves, especially with Thanksgiving in less than two weeks.

“Transportation costs, packaging costs, everything associated with it is going up,” Goetz said.

The Consumer Price Index measures the change in what we’re paying for goods and services. The price of meats, poultry, fish and eggs are up significantly month to month with an increase of almost 12 percent since 2020. Pork is up more than 14%, which the Consumer Price Index notes is the highest yearly increase since the early 90′s.

If your monthly grocery bill for your family was around $900 dollars last year, based on the index, you’re paying roughly 48 dollars more a month for the same items.

Energy prices are also increasing. Gas prices were up more than 6% from September to October for an increase of almost 50% from last year. Natural gas prices were up 6.6% in October for the largest monthly increase since 2014. They’re up about 28% from a year ago. Car prices have increased as well

One of the few declines in the past month are airline fares. They’re down just shy of 1-percent. But, economists don’t expect that to last with the rising cost of jet fuel and growing demand.

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