Inflation spike having short and long term impacts

PROVIDENCE, R.I. (WLNE) — With skyrocketing prices in the past several months, your shopping list has probably gotten short as costs get higher.

ABC 6 News spoke with shoppers outside of Whole Foods in Providence, who said they’re paying closer attention walking up and down the grocery aisle.

“I’m looking at prices more and I’m not really buying anything that isn’t needed,” Odilia Degouvia said.

Inflation has others separating their needs from wants. Even those that are signature to New England.

“Everything is inflated, even coffee. I don’t even go to Dunkin Donuts anymore,” Marissa Cifelli said.

Cifelli receives financial assistance from her family but if she didn’t, inflation would make her situation much worse.

“I would probably be homeless,” Cifelli said. “I would have to get food from other places and rely on the city. I know other people have it worse, so I’m grateful that I do have family to help me.”

As inflation reaches a 40-year high, food prices are up by nearly 12% over the past year.

ABC 6 spoke with economist Victor Matheson to explain how the rise of inflation has also put some long term planning such as retirement on hold.

“The prices have gone up 9% and your portfolio has gone down by 30%. All of a sudden, that comfortable retirement doesn’t look so comfortable,” Matheson said.

Matheson told ABC 6 when he thinks prices could return to normal rates.

“I feel somewhat optimistic that we’ll get numbers coming down in August as long as gas prices keep coming down it’ll be reflected in the August report and that will bring some significant relief,” said the economist.