Inflation affecting city of Kent and others in Northeast Ohio
As the COVID-19 pandemic roared across the country causing economic turmoil throughout many communities, the rise of inflation has been at the forefront of the discussion as the country continues to claw its way back to pre-pandemic life.
In the month of September, the reported inflation rate was 5.4%, the highest the United States has seen in 13 years. Federal Reserve Chairman Jerome Powell has stated on several occasions that the rise in the inflation rate is transitory, or in other words, temporary. Kent Economic Development Director Tom Wilke echoed Powell’s assessment.
“I kind of look at this inflation as being two different kinds of inflation,” he said. “There’s some inflation that appears to be, that it’s going to be temporary, and it’s caused by supply chain shortages.”
Wilke attributed the supply chain issues to the freeze in Texas earlier this year, which have had a domino effect on the workforce, causing the cost of labor to increase.
“I’m personally in favor of this, even though in my job I shouldn’t be, but I think this whole pandemic thing has given the labor force a new sense of power and they’re recognizing that perhaps they were undervalued in the pre-pandemic days,” Wilke said.
Momentum has built up as jobs in the food industry as wages have increased to attract potential employees and compete with bigger stores and restaurants in the industry. Restaurants have also seen the effects of supply chain shortages with some of their products and ingredients being in high demand.
“The cost of some of the goods may start to go down as supply chains get fixed, but the cost of labor may stay higher,” Wilke said. “Again, in my opinion that’s not necessarily a bad thing.”
Charlie Thomas, owner of Ray’s Place in downtown Kent, has witnessed the effects the rise in inflation rates has had on the restaurant industry.
“It’s been incredible,” Thomas said. “I mean all the way from food to drink to plastics and paper products, it’s just out of hand really.”
Fortunately for Thomas and other restaurant owners dealing with increases in prices for their supplies, Wilke seems to think it could be nearing an end.
“I think a lot of the things that are related to supply chain issues, in getting product, whether it’s manufacturing or in store will sort itself out by sometime in the first quarter of next year,” Wilke said.
Thomas alluded to the idea that Ray’s Place would have to increase its prices at some point to pay its employees and cover the rising cost of goods.
“We have to you know adapt and unfortunately probably gonna have to raise our prices, we haven’t yet but we’re going to have to, every place has because it’s really hitting the pocketbook you know,” Thomas said.
The pocketbooks of those in the workforce have also taken a hit. Stark State student Chase Centea worked at his hometown Buehler’s Grocery Store stocking shelves but had to find a new job as the pandemic worsened last winter.
“I was stocking shelves for $10 an hour, and that just wasn’t cutting it,” Centea said. “I started to search for better paying jobs that could work around my school schedule and give me more financial freedom.”
Centea ended up getting hired at Amazon, working in one of their Akron warehouses making $17 an hour. Wilke suggested Amazon’s pay was pulling people from these lesser-paying jobs.
“A lot of people, when they were laid off from their hospitality jobs last year because of the pandemic started working at these warehouses making more money, and therefore are not returning to their hospitality jobs,” Wilke said.
Centea was one of those people who never returned to his old job after making better money with Amazon. The 22 year-old couldn’t pass up the opportunity to increase his income during the pandemic.
“The shifts are long and tiring, but that comes with any job really,” Centea said. “I needed the extra money at the time to pay my bills and get out on the weekends and enjoy life with my friends.”
While no one knows what will happen to the inflation rates, there’s nothing that can be done locally to affect the rates, as it will have to play itself out before the country sees a change.
“There really is almost nothing you can do at a local level to affect the kind of inflation that we’re talking about, in fact, as you can see, there’s not a whole lot that can be done even at a national level,” Wilke said.
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