SOUTHERN TIER, N.Y. (WETM) – The largest shopping season of the year is now here, but rising demand and supply chain issues have caused a large surge in prices.
The slow reopening from the Covid-19 pandemic has placed a high demand for consumer goods across the country. According to economists, the inflation rate has reached 6.8%, the highest rate the country has seen in nearly 40 years. This is causing concern among residents shopping for the holidays.
“I mean, again I’ve seen restaurant prices have gone up just because of shipping and shortages and frankly the cost on their end with the supply chain has increased,” assistant professor of business Matthew Burr said. “They also have to raise their prices for the consumer. So it’s kind of a domino effect at this point.”
Despite the rising inflation problem, some stores in the Twin Tiers, including supermarkets and local shops at Corning’s Gaffer District, are still making sales like normal this holiday season. The only problems these stores faced so far include supply chain issues.
“There’s also supply issues on hams and and beef and all that kind of stuff,” Save-A-Lot owner Dave Marks said. “We’re still having very good sales for the holidays like we typically do. But what we see is customers are trading down because of inflation. Customers I believe will choose the less expensive brand of ham or pick the less expensive cut of beef, but they’ll still buy what they can so that they can still have their holiday meal.”
The persistence of high inflation has taken the steepest toll on those least able to afford goods for the holidays. Fortunately, economists are confident that inflation will begin to ease next year as the global economy shakes off the pandemic.