LIHU‘E — Surveys of Kaua‘i supermarkets and gas stations reveal consumer prices have risen by double digits within the last six months. At two Lihu‘e supermarkets’ checkout stands in October, a grocery basket full of 35 common, brand-name items totaled
LIHU‘E — Surveys of Kaua‘i supermarkets and gas stations reveal consumer prices have risen by double digits within the last six months.
At two Lihu‘e supermarkets’ checkout stands in October, a grocery basket full of 35 common, brand-name items totaled an average of $155.07. The identical items at the same stores on Friday totaled an average of $182.80, representing an 18 percent increase in prices within six months.
An unleaded gasoline price survey at a Lihu‘e filling station indicates prices have risen 26 percent, from $3.49 to $4.39, between Oct. 2 and April 2.
Prices will continue to climb in the coming months, according to news and industry reports.
Inflation is “going to be serious,” said Walmart CEO Bill Simon in a Wednesday meeting with USA Today’s editorial board. “We’re seeing cost increases starting to come through at a pretty rapid rate.”
Walmart’s media relations office did not respond to a request for additional information, such as which products the retailer anticipates will increase the most.
Citing retail strategist John Long, USA Today reported broad-based prices would start rising at all retailers starting in June and at levels “unprecedented in recent memory” due to steep increases in raw materials costs, labor costs in China and fuel costs for transportation.
MIT’s Billion Prices Project provides an index of inflation trends in online prices of goods. Between Dec. 31 and April 1, its Daily Online Price Index rose 1.97 points from 101.09 to 103.06, which equates to almost 8 percent annualized inflation.
“Consumers’ inflation expectations rose significantly in March and their income expectations soured, a combination that will likely impact spending decisions,” Lynn Franco, director of the Conference Board Consumer Research Center, said in a statement on recent findings. “There is a sort of diminished sense of purchasing power.”
The Federal Reserve’s latest monetary policy report projects only 1.3 to 1.7 percent personal consumption inflation, up 0.10 percent since its last monthly report.
A University of Hawai‘i economic indicators report released in February projected a 1.4 percent inflation for the metro Honolulu area during 2011.
During March, Hershey announced it will raise prices on candy products 9.7 percent effective immediately. Starbucks said it would soon increase prices for packaged coffee by 12 percent to cope with the rising cost of beans. Retail meat prices rose 9.2 percent last month, according to the U.S. Consumer Price Index.
Retail analysts say clothing prices will increase 10 percent in the coming months, with even bigger increases during the second half of the year.
• Vanessa Van Voorhis, staff writer, can be reached at 245-3681 (ext. 251) or by emailing vvanvoorhis@thegardenisland.com.
