Rochester, New York — According to some experts, inflation doesn’t show any signs of letting up.
Big food companies, like General Mills, are predicting food prices will be up over 10% for 2022, George Conboy with Brighton Securities said.
Conboy explained some outside factors that come into that. “One of the biggest components of inflation in food prices is energy costs,” he said.
From the fuel for the tractors in the fields — to the fertilizer — to the trucks on the road. “There’s a lot of energy input in food prices. And with energy prices way up, food prices will follow,” said Conboy.
Also, wages have risen as the nation has emerged from the pandemic. “Nearly all employers including farmers are paying more for labor,” he said.
From the dinner table to the dining table, Nick Nucchi of ‘Nucci’s Italian’ in Webster said he’s had to hike up menu prices. “I had to increase them by a good 10 percent. 10 percent to 15 percent,” he said
According to Nucci, customers haven’t complained yet, and if inflation fixes itself, he’ll bring prices back to normal. It all depends on where they get their food, beer, and liquor from. “…If they bring their prices down, yes,” he said.
According to Conboy, currently, we have too much money chasing too few goods, nationally. The price of just about everything is up. The pandemic managed to disrupt much of our supply output as people stayed home and manufacturing shut down, according to Conboy. “It’s a problem that will no doubt work itself out,” Conboy said. “The question is how long will it take? I can assure you, this is a problem that’s not going away in the next handful of months.”
In the second half of this year, we will likely be in a recession Conboy predicts.