Inflation at a 30 year high; what’s fueling the price spike like gas and groceries

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KANSAS CITY, Mo. – In October itself, the consumer price index jumped 9-tenths of a percent, meaning you pay more for almost everything you buy.

You’ve probably noticed gas prices going up, now more than $3.00 a gallon. Some of the last times we had inflation like this was during an energy crisis in the 1970s.

Now there are different factors at work.

People everywhere are feeling the pinch.

“It’s difficult because of the money to actually go out and do things,” said consumer Annalise Morgan.

Seeing prices on the rise especially at the pump and grocery store checkout.

“Definitely gas post pandemic and groceries I used to pay about $30 a week and now I probably pay about $60,” said consumer Emily Delassus.

At Tea Market in the Crestwood Shoppes they are paying more for shipping and products that they can still get.

“Of course, as a small business to stay profitable you have to pass those things along,” said Tea Market owner Stacie Robertson.

Rockhurst University Economics Professor Michael Stellern said more than 70 container ships stuck off the coast waiting to unload products is the biggest driver behind the historic rise in inflation. An average year it’s one or two percent, now it’s more than six.

“We can’t get the goods that we want into the country fast enough but at the same time there is the labor, the fast food restaurants can’t enough people to work for them, so they are increasing their wages,” Stellern said.

Those costs also get passed along. But as long as there’s demand with people returning to more activities a year and a half into the pandemic, couple that with decreased supply and you get higher prices.

Kansas Senator Roger Marshall on Wednesday called it Biden-flation. Stellern said that’s not entirely fair but said the infrastructure bill will only lead to a more robust economy and likely continued higher prices.

The good news, inflation isn’t expected to go on forever, estimates heard Wednesday probably another year or so.

A couple factors behind inflation, higher wages, especially in service industries driving up prices and just increased demand for goods like gas.

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