KANSAS CITY, Mo — Even with inflation driving up prices on the market, Americans are expected to open $14.6 billion on Super Bowl celebrations and $23.9 billion on Valentine’s Day this year, according to the National Retail Foundation.
But just how much more should you expect to pay for chocolates, a dozen roses or wings?
According to a recent reporter by the U.S. Bureau of Labor Statistics, price of goods surged by 7.5% in the last year.
But supply chain economist, Larry Wigger, said that is just the baseline inflation. Buyers can expect to see an additional 20% increase during consumer holidays.
Wigger said inflation right now is driven by both sides of the equation.
People are shopping more as the economy opens up, but supply chains are still struggling with labor shortages and transportation backlogs.
“Normally retailers would have been able to plan for that months in advance,” Wigger said. “But we don’t have that bandwidth in our supply chains right now — there’s not the space, there’s not the labor available.”
Marliese Mosley, the manager of Crestwood Flowers, said she ordered two months in advance for Valentine’s day.
Even with early preparation, she is paying more to buy her flowers than years past.
“Almost like double the price of what we have been paying,” Mosley said.
Not to mention, some of the flowers she ordered may not even make it due to supply chain issues.
“Because they might be having issues flying them in or getting them to the wholesaler,” Mosley said. “They fly them in from all over. South America — Ecuador.”
Consequently, her customers are paying about $20 more for a dozen roses compared to just two years ago.
Wigger said it is difficult to put a dollar value to the price upticks for every item.
A big part of that has to do with the effects of an unprecedented global pandemic, which has completely changed the habit and patterns of supply and demand.
“A global pandemic is what we call an idiosyncratic shock — it’s a one off unique thing," Wigger said. "So then, when we look at seasonal stuff after that, we have to ask ourselves how is this going to be different than years past because of COVID."
