Everywhere in America, from gas to hotel rooms to insurance premiums, prices are going down. And yet, our wallets keep getting thinner.
Why? Good question. It’s because grocery prices are skyrocketing. On average, the price of groceries went up 2.6% in April, the biggest increase from one month to the next since 1974.
- Egg prices increased by 16.1% last month
- Apples and oranges were 4.9% and 5.6% more expensive, respectively
- Chicken prices increased by 5.8%
The increase in prices, as you might have guessed already, is linked to COVID-19; food supply chains are being affected by a supply-demand disequilibrium.
Basically, as we hunkered down at home, we began cooking more. Demand for groceries increased, but farmers and food producers weren’t able to shift their deliveries away from restaurants and towards grocery stores quickly enough.
It’s a simple case of supply and demand: If supply decreases and demand increases, prices will go up.
There’s not much escaping it. For the time being, to fill up your belly you’ll have to empty your wallet.