Not since June of 1992 have we seen the consumer price index rise so drastically. According to the U.S. Bureau of Labor Statistics, the consumer price index is up 5%; 2.2 percent for food, 28.5 percent energy, and all items less food and energy 3.8 percent (www.bls.gov/cpi/). Many economists argue this is due to the comparison of numbers dating back to last year and the drastic changes COVID-19 brought, and the steady increase will level itself out in the next 6-12 months. Continuing their thought, they also counter the industries getting hit the hardest with inflation we have never seen before are those with supply chain issues (CNBC).
What does this mean for our industry? Nothing good. Almost every category falls under an FEC's operations; food, apparel, fuel, energy, and the list goes on. For an industry just trying to bounce back and get people in the door, our costs are skyrocketing, and we're put in a hard spot. Can we raise prices? Sure, but if the forecast is true, this will only hold water for so long. Our industry has always been one that has to keep a close watch on what we can charge the consumer. Do we raise pricing with the intention to lower them? However, we must keep in mind, our wages also increased, mainly from begging employees to return with lucrative offers and signing bonuses. These wages will not decrease, nor will the inventory we are purchasing at the higher rate, again forcing us to examine price increases. It's the perfect example of a catch 22 and, unfortunately, one that has no right answer. We can say, after the miserably year we've had, this sums up a perfect ending.