Inflation and the Consumer

The word inflation is being tossed around a lot nowadays, but what does it actually mean? Have you ever wondered what type of effect inflation has on the basic things in life like food and skin products?

In simple terms, inflation is the measure of the rate at which the prices for goods and services increase over time. There are many causes for inflation; it could be a natural disaster, wars, or government action, just to name a few.

In this article, we will examine the impact of inflation which directly affects a consumer in terms of the price of goods such as food and care items, as well as the effect it has on the transport industry that transport these goods.

Transport

The transport industry has seen an astronomical increase in prices due to inflation. This is influenced by labor costs, maintenance expenses and the rising fuel price. In the past year, gas has risen by 15%, while diesel sees a shocking increase of 43%. This, along with the increase in trucker wages, leads to an elevated price of transport fares for consumers. It is no wonder that the price of food and beverages have also seen a significant rise.

Food

In the above paragraph, we covered how the costs of transport have increased due to inflation. It is only logical then that the price of food and beverages would increase as well. The food industry is particularly susceptible to the ever-climbing inflation rate, as it is a section consumers won’t cut back on. Dairy was one of the food groups that saw the biggest increase in price over the past year, rising to 13,5% more expensive than the previous year. Other staple foods like eggs and bread also suffered, with eggs raising by a third of their original price, and bread raising by a striking 12% since June 2021. The increase in the price of dairy products bites into the fitness industry as well. Products such as meal replacements and whey powders face a significant increase in price as the cost of cheese and its production increases. As production costs of these fitness nutrition products increase, consumers can expect to see a rise in protein bars, creatine, greens powders, and vegan alternatives.

 Personal care items

Another industry to take a hit in the inflation crisis is the personal care industry. Due to the increase in inflation, the price of many of these products increases as they are made with natural resources. For example, health and beauty product prices have doubled over the last four months, and household product prices have exceeded a 20% increase in the last year. Another aspect of the personal care industry, cosmetics, are at the most expensive they have been in the last 6 years. As the inflation rate continues to climb, the prices of these products are expected to keenly follow this trend. This will undoubtedly have an adverse effect on businesses as consumers start to cut back on items that are seen as unnecessary. Inversely, hair and dental products have only seen a 0.8% increase in price.

Final thoughts