Inflation affecting food prices: up 13% from last year
BOWLING GREEN, Ky.-“Inflation is a silent killer,” said Western Kentucky University Professor of Finance Jon Handy.
The rate of inflation has slowed slightly, but people are still finding shockingly high prices at the grocery store.
“This is not going to be a simple problem to solve,” said Handy.
Food prices are up an average of 13.1% compared to last year. Eggs are up 38%, flour 23% and chicken 18%.
“As far as I can remember in my lifetime, I’m 35 years old…in my lifetime I think these are some of the highest inflation rates that we’ve experienced,” said Handy.
Handy says that there are multiple reasons food prices are increasing, such as the conflict in Ukraine and Russia affecting the amount of wheat, a hot, high temperature summer, and a larger demand for food.
“I think increased prices are here to stay,” said Chaney’s Dairy Barn owner Carl Chaney.
Our local farmers are feeling the effects of inflation on their operations.
“My feed bill has gone from about $10,000-12,000 a month now it’s running $14,000-17,000 a month. We paid about $55 for a five gallon bag of cream a year ago. That same bag of cream today is costing me about $110,” said Chaney.
And they can sell their farm products for more than ever before, but it doesn’t matter.
“We’re selling the milk for more but our input costs have gone up so high it more than offsets the increase,” said Chaney.
So what should you be doing to make sure you don’t fall victim to inflation?
“Continue to strive to live within your means. Identify those things that you might have to cut out of your life, it’s tough, I get it that’s tough,” said Handy.
Be proactive too. He says recessions are an excellent time to invest.
“When do I buy clothes? I buy clothes when they go on sale. I don’t buy clothes when they’re at their most expensive. You can kind of think of a recession as this time period when stocks are on sale,” said Handy.