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Better buy those water bottles and stock up on all those water filters because if you keep on buying them, you might go bankrupt.
It’s mind boggling that after years of taking for granted gum or a water bottle or even a burger, we might have to actually include them when we do our monthly budget. Yes, they will become so expensive it could make a dent in our budget.
The latest USDA “Consumer Price Index for Food” predicts average meat prices will rise up to 2.5%, fresh fruit will increase 4.5% and eggs at 1.5%. This spike comes on the back of prices that had already risen during last year’s pandemic stockpiling and supply chain disruptions that never went down.
Unilever CEO Alan Jope told investors that we are in a period of unprecedented commodity inflation.
As a result of increased product costs, some companies including Unilever have begun selling products at the same cost, but in smaller quantities.
Even companies that cater to more frugal budgets have been forced to hike prices. Dollar Tree CEO Michael Witynski said that the company has struggled to keep prices low.
Why are food prices surging?
Food prices are rising in tandem with a broader inflation trend in the US. While vehicle and fuel costs have led the surge in consumer prices, food prices have also risen as increased demand meets supply-chain snags. Key commodities have become increasingly difficult to obtain due to shipping delays, the national labor shortage, and severe droughts in key countries.
A global shipping-container shortage — which has about 5.5% of all freighters waiting weeks outside of ports to unload, including several key ports in southern California — has made it difficult to transport goods.
The delays have put transportation costs at a premium, as companies compete for limited space on container ships and delivery trucks. Overseas transportation costs between Asia and the US have surged about 250% higher from this time last year, according to online freight marketplace Freightos.
So what will the rest of 2021 look like?
Will rental prices have risen by a total of 15 or 20 percent by the time the year is through?
The Biden administration continues to insist that inflation is “low”, but hardly anyone believes them. I certainly don’t.
Whenever a major crisis comes along, their only answer is to create, borrow and spend more money.
Many are comparing this to the Jimmy Carter era of the 1970s, but the truth is that what we are facing is much worse than that.
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