Inflation is surging and local businesses are feeling it
MORGANTOWN, W.Va (WDTV) - Inflation is surging and local businesses are getting hit.
From gas to groceries, restaurants to retail, you can expect changes in your everyday spending.
Economics professor at WVU Dr. John Deskins says consumer costs are up big time.
“Right now for the past several months, we have been in the midst of the highest rates of inflation that we’ve seen in decades, really more like 30 years probably since we’ve seen inflation this high,” said Dr. Deskins.
Dr. Deskins says there is one major reason for all of this.
“Given that supply is constrained because of shipping issues or logistical issues, we can’t get as much product as we demand at the moment so that high demand combined with a restriction in supply is driving prices up and that’s why we are seeing incredibly high rates of inflation,” said Dr. Deskins.
A pair of economic factors, seldom-seen levels of inflation and a record number of workers quitting their jobs, could cause problems as the U.S. heads into the holiday season.
Because of covid we’ve seen a lot of people leave the labor force,“ said Dr. Deskins. “For example last year, the number of people who retired was about three times what it normally is.”
Raj Sundaram, owner of the Chaang Thai restaurant in Morgantown knows first hand.
“I have seen that the cost of the goods of every single item that we use in the restaurant have gone up,” said Sundaram.
Sundaram says the inflation has affected the number of supplies like utensils and to-go boxes he can get.
“We are getting supplies on a limited basis you know; I can only order a certain amount.”
Items that are specific to his restaurant such as special sauces and ingredients have also gone up.
“Anywhere from 6 to 20% in some cases especially since I own some Asian restaurants many of the particular essential ingredients, Thai and Vietnamese sauces are becoming increasingly hard to get,” said Sundaram.
Dr. Deskins says he’s optimistic and says while it depends on a number of factors, we should see more normal rates of inflation within the next 6 months to a year.
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