PHOENIX (3TV/CBS 5) - You feel it on the car lot, at the gas pump, and at the grocery store. The cost of just about everything is going up. December's Consumer Price Index shows a 7% spike compared to a year ago.

Phoenix's 9.7% inflation in 2021 exceeds national rate of 7%

"A 7% annual rate of increase in consumer prices is huge," said Greg McBride, the chief financial analyst at Bankrate. "It's the fastest rate of increase in almost 40 years, and there's not a whole lot of silver lining to it."

US inflation soared 7% in past year, the most since 1982

The Federal Reserve is poised to raise interest rates to slow down demand in the economy, but McBride says it will take time to see an improvement in inflation.

"Until we start to see some measurable and sustained improvement in the supply chain, we're going to be facing these higher-than-customary price increases because a lot of this inflation we're seeing is rooted in the supply chain," McBride told 3 On Your Side. "The omicron variant just throws another variable, another wrinkle into that supply chain issue."

It all has a very real impact on all of us.

"Going to a fast food place we go to, I was like, 'Wow! This feels like this is 2 bucks more than we normally pay, and it happened overnight," said Deacon Hayes. Hayes is a dad of two young kids. He is also the founder of Well Kept Wallet, a site dedicated to helping consumers dig out of debt, save, and budget. He says there are ways to keep your budget intact, even with soaring prices.

"It's just about having a plan and saying, 'Hey, I've got to reevaluate my budget for these different categories,' and say, 'What can I do? Can I wash my car at home? Can we eat out less? Can we maybe eat someplace different that's less expensive?'" Hayes said. "[We have to] start to make shifts that will let us actually stay on budget instead of going over budget,"

One of the unavoidable parts of a family's monthly budget is food. According to the CPI, food prices have increased more than 6% year over year.

"Plan your meals in advance, so that way you're not just winging it and saying, 'Oh, I need this. I need that!'" Hayes suggested. "Another thing you can do is use couponing apps. You can go into the store, pull up your app, select the different things you're buying, and save money on eggs, orange juice and proteins or whatever it may be from stuff you're already buying." To save even more, consider buying generic versus brand-name products.

As inflation targets family budgets, Biden White House says it has a plan

The rising cost of food isn't just impacting your grocery bill. It's also affecting your favorite local restaurants. Josh Garcia from Miracle Mile Deli in Phoenix says the increasing prices for food and other products, like foam takeout containers, are forcing price increases on the menu.

Inflation leaves Arizona restaurants 'trying to survive'

"The proteins that we sell so much of have just gone up and up and up with seemingly no end in sight."

"It's not because we're trying to make more money. It's just trying to survive," Garcia said. "The proteins that we sell so much of have just gone up and up and up with seemingly no end in sight. It's been a struggle for all restaurants nationwide, but especially the local ones to really keep up on things."

Christine Boerner, owner of Karl's Barkery, said one of their vendors went up 10% with everything across the board due to an issue with truck drivers and distribution.

"It’s not just individual items but everything jumped up very quickly. When we do get supplies we pay a lot more for them. For cakes and donuts, things have jumped up 15 to 20%. This is the fastest, so far, there has been jumps and raises but this is the absolute fastest all across the board. The food cost going up it has been accelerated. That’s something you can’t foresee," Boerner said.

Boerner said she's had less money in her pocket the last couple of years just trying to make ends meet because of these unexpected costs.

Phoenix bakery forced to increase prices due to inflation

A Phoenix bakery is feeling the impact of rising inflation, forced to increase prices to continue make ends meet.

Now everyone is feeling it and understands it’s very real. You can see the price has gone up and you feel it every day now," Danny Seiden, President and CEO, Arizona Chamber of Commerce and Industry, said. "People going to the grocery store ask why is meat and chicken costing as much as it does? So there isn’t a day that goes by that we’re not hearing about this. Locally, I think people should be smart with our budgeting and decide when it’s a good time to purchase something or when it’s not a good time to purchase something."

Restaurants anxious as omicron, high food costs take toll


Fed’s Powell says high inflation poses threat to job market
Federal Reserve’s Powell: High inflation ‘exacts a toll’
Consumer prices up 5.7% over past year, fastest in 39 years

Copyright 2022 Gray Media Group, Inc.


Recommended for you