Price tags in the grocery store are going up, but the end goal for shoppers remains the same as they adapt their budgets.
Compared to last year, groceries are up 10%. Now, bread producers are also warning that those prices could spike another 35% in the months to come.
There are a lot of factors that contribute to the higher prices: the fuel is getting more expensive to farm and deliver the product, the wrappers and packaging costs are going up, and Steve Goode, Executive Director Arkansas Grocers and Retail Merchants, said the cost of the grain itself is getting higher.
“The collective behavior of everyone trying to buy now so that they can miss the higher prices later, can lead to higher prices in and of itself,” University of Arkansas Little Rock Chief Economist Michael Pakko explained.
Pakko warns, bulk panic buying could make the inflation process even worse by increasing perceived demand for a product with limited supply.
See the full article from THV 11 here.