LAREDO, Texas (KGNS) – Shopping for school supplies is traditionally expensive, but many Americans are finding their bills are higher than before.
Montserrat Pla, a mother, noted that she spent more this year than in previous years. “The main thing you can do is look at what you have and what you can reuse, and that’s what we did. Also, try to find the best deals on school supplies and, most importantly, save throughout the year so you have enough money when it’s time to go shopping,” Pla said.
She is not alone. Juana Alvarez, a resident of Laredo, has also felt the effects of rising prices. “Everything has become more expensive, you could say it is twice as expensive. This affects us a lot because you can see it in everyday costs,” Alvarez noted.
According to Amit Ghosh, professor of economics at Texas A&M International University (TAMIU), the price increase is partly due to the pandemic. “There were disruptions in the supply of raw materials and intermediate goods, which caused these so-called supply chain bottlenecks and supply chain problems. This is due to lower inventories of raw materials and intermediate goods and increased product prices. We had this ideal inflation rate of 2% even before the pandemic,” Ghosh explained.
Ghosh stressed that supply chain issues combined with increased demand have led to higher costs. He also noted that these costs are felt more when wages do not keep pace with inflation. “Our real income, the purchasing power of the dollars we earn, is falling. Then people are faced with challenges and have to set priorities. Maybe you have to limit spending on a particular activity if you want to prioritize spending on the more important needs,” Ghosh said.
Inflation rates were lower before the pandemic, which gave the dollar another boost. Ghosh added that inflation has been slowly declining over the past two years and he hopes it will continue to trend downward. While he is not sure whether prices will return to pre-pandemic levels, lower inflation rates would lead to lower costs and provide welcome relief to many.
Ghosh also suggested that buyers could adapt to rising prices by switching to generic drugs when possible.
Click here to see more headlines.
All rights reserved.
