Here is what you will likely pay more for in 2022
LOUISVILLE, Ky. (WAVE/CNN) - Global supply chain issues helped lead to inflation not seen in decades with prices skyrocketing for many things that we needed in 2021.
Economic experts say that with high pent-up demand, many of those costs will likely stick around in 2022.
From the supermarket to the gas pump, ongoing supply chain problems and surging, post-COVID demand are driving up prices in 2022.
“We’re seeing the highest inflation that we’ve seen in almost 40 years, and it’s really critical that inflation be brought under control quickly,” Roger Cryan, Chief Economist of the American Farm Bureau Federation said.
The latest food price index from the United Nations found global food prices are at the highest level in a decade and experts worry continued disruptions from the pandemic like labor shortages, high costs for shipping and fertilizer could make things worse.
“Those prices have gone up quite a bit doubled, tripled some of those, some of those fertilizer prices,” Cryan said. “Farmers face a lot of difficulties getting the things that they need to produce.”
Also likely returning in 2022 is more pain at the pump. While prices have fallen recently, a new Gasbuddy forecast predicts prices may climb to almost $4 a gallon by Memorial Day.
“The economy is very strong and gasoline demand is going to be strong along with it and that’s likely behind the push the increase in gas prices that we’re anticipating for the year ahead,” Patrick De Haan of Gasbuddy said.
Meanwhile, prices for electronics, clothes, and furniture could also jump this year. That’s according to a UN report that found prices for of those products could rise by more than 10 percent globally due to higher shipping costs.
Economists warn COVID-related production shutdowns could scramble supply chains even further.
“We’re not gonna shut down here, but China, they’ll shut down, and if China shuts down, that has impacts on all those supply chains that originate in Asia,” Mark Zandi of Moody’s Analytics said.
The cost of owning a home is also expected to stay high, according to the Federal Housing Finance Agency. The average home prices skyrocketed nearly 20 percent through the third quarter of 2021 compared to 2020.
With inventory expected to stay low, fierce competition is expected to keep those prices soaring.
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