Inflation at 39-year high in US, creating struggles for Michiana businesses

 

GRANGER, Ind. -- Economic inflation has risen to a 39-year high-- meaning the prices of goods have increased, and Michiana residents are already feeling the hit in their wallets.

“I think it’s getting worse and it’s gonna keep getting worse, until the government does something to straighten it out," said Harve Ortman, a shopper at the Martin's in Heritage Square. 

Shoppers have seen the impacts of economic inflation-- the prices of goods and services have risen nationally, on average, by 7% in the past year-- from groceries to gas prices.

Ortman says he's seen the rise in prices all over town, particularly in food items like bread, meat and even soup.

“I’ve been in several grocery stores this morning, in fact, and a certain percentage are going up. Everything," he added.

And this kind of inflation does not affect just consumers, but businesses as well. 

“When it gets to higher levels, it’s very disruptive," said Klajdi Bregu, an Assistant Professor of Economics at IUSB. "It’s not only going to increase costs for the buyer, and so some businesses may struggle because customers might not be able to afford these higher prices.”

One restaurant-- The Shed Steakhouse, which has been in Granger for over forty years, announced it's closing its doors on Sunday, January 16-- in part because of difficulties in getting product, and because of the high costs to operate. 

“All prices have pretty much doubled since last year," said owner Tom Samoilis. "Utilities are going up, insurance is going up—everything is going up! The fact of the matter is I can only raise my prices so much. Because at the end of the day, the customers pay for everything, but to a certain extent. The consumer’s gonna say ‘hey that’s way too high, I can’t pay $50 for a steak.’ But because in order to keep up with inflation and everything else, that’s what I have to do!”

Business owners and shoppers alike both worry about tough times ahead. 

“We’ll be more conservative with our money," Ortman said. "We got to be, especially because we’re retired, we only get so much, so we got to be careful.”

“I just can’t see how things are gonna be better any time soon. I just can’t see it," said Samoilis.

Bregu added there are ways to decrease overall prices raised due to inflation, though he warned that if not done carefully, it can lead to an economic recession.