BECKLEY, WV (WVNS)– Inflation prices have hit a staggering seven percent increase, the highest it’s been in 40 years, and it’s taking a toll on those in the mountain state.
According to the Associated Press (AP), prices across the board are at their highest since the early 1980s, wallets are tighter for everyone, but especially for those on low or fixed incomes. Inflation prices hit a new generational high. AP said prices are now 7 percent higher than they were at this time last year. We asked shoppers their reactions to their rising grocery bills.
“It’s awful, I have a 13 year- old- and you know kids they love to eat,” said Tiffany Bailey.
Bailey said prices have hit her home hard but her family was able to adjust. She said she could not imagine being on a fixed income in a time like this. Robin Godbey and her husband are retired. Godbey said when it comes to groceries, they’ve had to make some decisions.
“We make decisions between a more expensive cut of meat and a less expensive cut of meat and that’s hit us the most,” Godbey said.
So why have prices risen so sharply so quickly? We asked Dr. Joshua Price, an assistant professor of economics at WVU Tech.
“We’ve increased the money supply,” Price said. “So for now in the current situation, that’s best explained by last year’s stimulus programs, so we’ve had a lot more money come into the economy. On top of that, there’s been an increase in consumer demand.”
He said economists are studying the situation. He predicted this excess money, paired with the ongoing supply chain issues will continue to affect prices for a long time in the future, and now more than ever you should reevaluate your budget.