HUDSON, Fla. — The latest federal inflation report confirms what many consumers and business owners have been feeling for months: prices are climbing again.
The Consumer Price Index rose 4.2% in May compared with a year earlier, marking the first time inflation has topped 4% in three years, according to the U.S. Bureau of Labor Statistics.
In Hudson, Get Hooked Grill owner John Hill said higher costs have become a regular part of doing business.
“Beef is crazy right now. Chicken is crazy right now,” Hill said.
Despite rising expenses, Hill said he has resisted raising menu prices.
“Look at the fuel. It’s $4.50 a gallon. Nobody is going out. There’s no disposable income anymore. Everybody is scared of what’s going to happen next,” he said.
The Bureau of Labor Statistics reported that prices increased by 0.5% in May alone, after rising by 0.6% in April. Energy costs were a major factor, increasing 3.9% during the month and accounting for more than 60% of the overall increase. Over the past year, energy prices have surged 23.5%.
Food prices also continue to climb. The overall food index increased 3.1% during the past 12 months, while grocery prices rose 2.7%.
Server Angel Quinonez recently experienced sticker shock while shopping for his own family.
“They wanted $20 for roast beef at Publix. I couldn’t believe it. I was shocked. Actually $20.99. I still remember that price,” he said.
The inflation report shows some items have risen much faster than overall food prices. Coffee is up nearly 20% over the past year, while ground beef has increased about 13%.
Not every grocery item is becoming more expensive. Egg prices, which soared in previous years, have fallen more than 50% from a year ago.
Economists estimate that the average American household is spending nearly $300 more each month on the same goods and services than it did a year earlier.
Workers at Get Hooked Grill said they are making adjustments in their own lives to cope with higher costs.
“Actually, I’ve done it myself. I’m cooking at my house more often now. Normally, I’d get something to eat here. I’ve been going home and cooking, trying to conserve my money,” said Quinonez.
Another said higher prices have changed spending habits.
“I haven’t been out to dinner in a while because that alone is just super expensive. But even in here we don’t see as much people in here as we used to before,” cook Lauren Meszaros said.
The Bureau of Labor Statistics also reported that shelter costs rose 0.3% in May, while restaurant prices increased 0.3% during the month. Medical care, airline fares, communication, and recreation costs also moved higher.
Hill said he is trying to attract customers with extras such as live music while keeping menu prices stable. But he worries about the long-term outlook for independent restaurants if costs continue rising.
“It comes to a point that something’s got to give. Something’s going to break, and it’s the restaurant industry as a whole hanging on,” he said.
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