US consumer goods prices highest since 1990

SAN DIEGO COUNTY, Calif. — The spike in inflation began in April, when the nation began to emerge from the lockdown and consumer demand for goods like cars, gasoline, and furniture sent prices up.

"I just feel like everything has trickled up in the stores, meat and dairy, stuff I've noticed a lot," said Mark Green, adding shopping for groceries is not how it used to be.

"I noticed a lot of things aren’t there so when they are there it’s expensive, like even cleaning products," Green said.

And he’s right. The US is seeing the highest jump in prices since 1990, climbing 6.2%.

Economist Alan Gin says a big part of that is because of the pandemic.

"We have not had a pandemic that has shut down the economy this is the first time we’re trying to revive the economy from a complete shutdown so you’re gonna have some hiccups," said Gin

He said there's a variety of reasons also causing prices to skyrocket.

"From labor shortages to supply chain problems and even climate activity," Gin said.

He says there’s one major item that’s continuing to climb in price.

"Beef is up 20% compared to last year, the reason we’re having problems is there was bad weather early in the year that damaged a lot of crops that caused feed prices to rise considerably," said Gin.

Gin says aside from the lack of workers a part of the reason is us.

"This is a symptom of the economy coming back. More people are employed now than a year ago. They have money, they are able to go out and spend it, and so people are going on a spending spree and they are buying up products and as a result of that there are some shortages," said Gin.

And consumers have noticed, "It’s been gradual over the past few years prices have been going up ever since the pandemic hit," said Gin.

Gin said we could see some relief by the end of 2022, but we’re not alone, globally food prices have gone up 30%.