(KRON) — Bay Area consumers are feeling gouged at grocery stores as the cost of food increasing 10% to 12% in the last 12 months. Gas prices have also soared 48% during the same period.
“Couple months ago, this would have been 120-bucks, and yeah, now its closer to two,” consumer Warren Faust.
Triple-A says the national average per gallon is $4.09. However it is $5.74 in California.
“We’ve cutback on our little day trips when we go different places or overnight. We don’t go to Reno its just too much gas,” Dixie Sala, a consumer said.
The Russian invasion of Ukraine and the pandemic have led to disruptions to supply in the food and energy markets.
The labor department reported inflation has jumped 8.5% in the past year. Although economist and global strategist with Wells Fargo investment institute in San Francisco.
Economist Gary Schlossberg says wages are up 6% during that same period, they’re still not keeping pace with inflation.
“We hope the balance will begin to improve a bit. We don’t look for wage inflation to slow quite as rapidly as price inflation over the next 12 months,” he said. “And, that should take some of the pressure off purchasing power.”
Schlossberg believes the rate of inflation will peak in the next few months and possibly dip below 5% next year. However, consumers say this isn’t fast enough
“Just here in Safeway, I got a pound of ground beef,” Sala said. “It was $9.00. I mean, how do people who don’t have much income coming in, how do they do it? It’s horrible.”
“Just gotta do what you gotta do, right?,” shopper Jana Jackson said. “Cut in other areas to be able to get to where you need to go.”
Economists say the federal reserve will likely raise interest rates in the coming months to slow borrowing and spending to brunt inflation.