SAVANNAH, Ga. (WSAV) – Prices for many of the things we need to buy increased again in November. You can blame inflation which has caused average consumer prices to go up by 6.8% percent in a year’s time (from November of 2020 to November of 2021.)
“It’s not about worry as much as it’s about planning and thinking about what you want to do to adjust to the prices,” said Richard McGrath, Professor of Economics at Georgia Southern University.
“Food is a big part of this, energy is a big part of it and prices for those have been increasing and were higher in November, too,” he said.
He says prices for some food items is even higher than the year over year of 6.8 percent.
“For example that over the past year, meat, poultry, fish and eggs have gone up by 12.8 percent. From October to November they went up about half a percent,” said McGrath.
The price of gas is up by abut 50 percent since last November but McGRath reminds us that demand was way down last year at this time because of the pandemic. He says oil production has not been ramped up as much as it needs to be, in some cases because the cost of gas can remain higher. The price of gas has decreased about a dime in the last month.
McGrath says we can’t really control these prices and some believe the federal government has more power over these prices than it really has.
“Ultimately, there are all kinds of market forces going on here. A lot of them are tied to Covid and supply chain issues. We can’t control them because they’re not politically controlled, there are market forces driving these things,” he said.
McGrath says part of the shock value in current prices is that we went from lower than average inflation to higher than average.
He urges people to conserve gas where they can which can translate into some savings and to use careful planning when grocery shopping. He says that can save a few dollars as well.
He doesn’t expect this kind of inflation to last forever because supply chain issues are getting somewhat better. He also says consumers are concerned and looking for help in terms of higher wages to cope.
and many people can feel that for sure.
with the concerns does come word that wages for at least some people are going up.
“A lot of households lose a little bit of ground every year. And now the concern is they’re going to lose a lot of ground if they don’t get that raise that covers the cost of living they’re going to have a real problem with that inflation,” said McGrath.