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Friday, March 29, 2024

Grocery Prices

Credit: WDEF CBS Chattanooga, TN
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Grocery Prices
Grocery Prices

Grocery Prices are going up.

The Suez Canal fiasco is one reason but the others are factors in our own economy.

At the grocery store are on the rise, and economic experts say it's expected.

News 12's brian armstrong joins us now live with why supply and demand is only part of the reason.

Supply and demand is key in determining the price of anything.

The supply chain was disrupted for several days after a stuck boat in the suez canal slowed down shipping worldwide, but that's only part of the reason for spending more money at the store.

See you're talking 10,000 truckloads of freight on a single ship and 400 ships were stranded waiting to get through.

Worldwide shipping was disrupted for several days as the suez canal was blocked by a boat.

It basically shut off one of the world's most important waterways and transportation alleys.

Craig fuller with freightwaves says this caused a major backup in the supply chain and will impact raw materials.

A lot of manufacturing in the united states depends on raw materials from overseas so particular things like silk and certain types of food commodities may be delayed.

Utc economics professor alam says the boat back up is only one part of the supply and demand chain.

He says prices are going up because gas prices increase shipping costs, people have more money to spend due to stimulus checks, and demand for goods is increasing.

No, they haven't spent much of the stimulus checks before but now probably they have started spending that money.

Alam feels all of these supply and demand factors are part of the reason for grocery store prices increasing but he feels inflation is a bigger factor.

There is a spike in inflation expectations at this moment and they're trying to transmit that to the real prices of foods price alma says inflation is increasing due to potential increases in the minimum wage, uncertainty surrounding trade with other countries, and the proposed infrastructure package.

This huge government spending also has pressure on inflation.

We can compare inflation to the stock market.

The stock market goes up or down now based on people's future expectations.

He told me inflation rates react in a similar way.

Brian armstrong news 12 now the salvation

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