‘CRISIS SITUATION’ – As inflation hits 40-year high, financial strains hit residents here at home – Daily Local
Today, Americans pay more to survive, let alone prosper.
From the cost of fruit at the local market in Kennett Square to a ready meal in West Chester, prices are higher than ever for food, gas, electricity – just about everything.
“Inflation is crushing the hospitality industry in many ways,” said Domenick Savino, managing partner of The Drexelbrook, a popular dining and events center in Drexel Hill. “Prices fluctuate daily in the commodity market, which presents a real challenge when booking future events to quote and honor prices for 2023 and beyond.”
“For those of us in the private events industry, we have honored the contracts signed two years ago with prizes. Now, with the sharp increase in the cost of goods, it really takes away some of the bottom line” , said Savino.
Last month, inflation increased by 11.3% at the wholesale level compared to June 2021, as previously reported. On Thursday, the US Department of Labor reported that America’s producer price index has accelerated at the fastest rate since hitting a record 11.6% in March.
“We have removed certain items from our menus, primarily crab, lobster and premium meats, or listed them at ‘market price’ to be determined closer to the event date. Inflation also affects wages and salaries as inflation rises, as does the need to increase employee compensation,” Savino said. “On the other hand, it’s very difficult to beat inflation on menus. So for small businesses, it’s a crisis situation.
Yet even more than food, there has been a continued spike in energy prices in southeastern Pennsylvania and elsewhere.
Gasoline prices continue to soar at dramatic rates, although recently prices at various Chester County gas stations have dropped to just below $5 a gallon.
“Absolutely ridiculous, a quarter of my paycheck, if not more, shouldn’t go to gas every week,” said Diedra James from Oxford.
Of course, with inflation continuing to rise in America and rumors of a lingering recession from Wall Street to Main Street, some onlookers are expecting gas prices to hit the $5 mark locally. by the new year.
“As an entrepreneur, gas prices affect vehicles and equipment and enjoyable activities like boating,” said Landenberg native Brett Meyer of Franklin.
Next year, average global refining margins are expected to exceed their five-year average range, although “nowhere near as impactful as 2022,” said analyst Alan Gelder of research firm Wood Mackenzie. , in a June report from Reuters.
According to the US Consumer Price Index, inflation hit a 40-year high in June at 9.1% – the biggest annual increase since 1981.
Nearly half of the increase is due to rising energy costs, as noted earlier. Inflation continues to impact US household budgets while pressuring the Federal Reserve to aggressively raise interest rates – surprising trends that increase the risk of recession.
“Inflation has caused us to change our ways,” said Landenberg resident Barbara Croyle, founder of AgingConfident. The biggest impact is on the food.
The Landenberg resident said her family was upset “we are unable to support local businesses as we have in the past”.
Although Croyle added that gas is also an issue, she drives a Prius and is therefore able to move around.
Prices in June rose dramatically from a year earlier, with gasoline up 59.9% and fruits and vegetables more than 8%, according to the US Bureau of Labor Statistics. The cost of grain has increased by more than 15% compared to a year ago. Nationally, even the cost of flour increased by 5.1%.
“Inflation is not Putin’s fault,” Croyle said. “It’s entirely the fault of out-of-control government spending and bad Federal Reserve policies.”