LAREDO, Tex. (KGNS) – Back-to-school shopping is traditionally expensive, but many Americans are finding their bills higher than before.
Montserrat Pla, a mother, noticed she spent more this year than in previous years. “A lot of the things that you can do is see what you have, and what you can reuse, which is what we did. Another thing is trying to find the best deals for school supplies, and first and foremost saving year-round so that you have enough money for when it’s time to shop,” Pla said.
She is not alone. Juana Alvarez, a Laredo resident, has also experienced the impact of rising prices. “Everything is more expensive; we could say it’s double the price. It affects us greatly because you see it reflected in your everyday costs,” Alvarez noted.
According to Amit Ghosh, Professor of Economics at Texas A&M International University (TAMIU), the rise in prices can be partly traced back to the pandemic. “There were disruptions in the supply of raw materials, intermediate goods, which caused these so-called supply chain bottlenecks, and supply chain problems. That’s due to fewer supplies of raw materials, intermediate goods, and ramped-up prices of items. That inflation ideal rate of 2%, we were there before the pandemic,” Ghosh explained.
Ghosh emphasized that supply-chain problems combined with increased demand have led to higher costs. He also noted that these costs are more noticeable when wages do not keep pace with inflation. “Our real income, meaning the purchasing power of the dollars we earn is falling. That’s when people face challenges, and they have to prioritize. Maybe you have to cut down on spending on a certain activity when you want to prioritize spending on the more essential needs,” Ghosh said.
Pre-pandemic inflation rates were lower, allowing the dollar to go further. Ghosh added that inflation has been slowly decreasing over the past two years and hopes it will continue to trend downward. While he is unsure if prices will return to pre-pandemic levels, lower inflation rates would lead to lower costs, providing welcome relief for many.
Ghosh also suggested that shoppers can adapt to rising prices by switching to generic brands when possible.
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