I think I’m turning into my parents. I now comment on the price of things. Over the past year, I found myself saying phrases such as, “I remember when that used to cost…” or “When I was growing up, we could buy that for ‘X’ amount.”
The velocity at which these statements are becoming top of mind tells me either I’m getting old or something is changing — and quickly.
It might be both scenarios; inflation has become a pandemic reality. According to the Labor Department, consumer prices for August jumped 5%. Meanwhile producer prices rose at their fastest annual pace on record — 8.3% higher in August compared to the same month a year ago. On the food front, ag products such as meat, poultry, fish and eggs are up nearly 16% since August of 2019.
HISTORIC PRICE JUMPS
Globally, the situation is worse. According to the Food and Agriculture Organization (FAO), food prices are up 40% over the past 15 months. It’s the biggest gain since what became known as the Arab Spring in 2010 and 2011, when rapidly rising food prices led to economic and political unrest across Asia, the Middle East and Africa. FAO reports, adjusted for inflation, food is more expensive now than at almost anytime in the past 60 years.
It’s not just food. As fuel, inputs, equipment, vehicles, etc., go up, the purchasing power of every dollar is less. Supply chain sluggishness and local restaurant and store closures are becoming a common occurrence.
It’s enough to make this middle-aged whippersnapper pine for the good ol’ days of 2% to 3% inflation and $2.50 gasoline. While we don’t know how long these shipping shenanigans are going to last, one thing I know from years of well-studied observations of my elders amid their morning cup of joe that what goes up, stays up. Expenses only seem to travel one direction.
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