Prices are higher, paychecks don't go as far, and the residents are saying that simply getting through day-to-day life has become more difficult than ever. Inflation is something we all saw change across the country, and residents here are feeling it in their daily lives and the grocery store aisles.
For a number of years, inflation was maybe only a thought larger than a good headline. In 2019, for example, the national inflation rate was about 1.8%, which was a pace a lot of households could keep up with. And then Covid happened, which snarled supply chains and created demand changes like was never seen before, and before anyone knew it, prices were climbing fast. In 2021, inflation quickly rose to approximately 5%, and after that it climbed to 8% - the highest rates of inflation in 40 years.
Today, while the official inflation rate has cooled to about 3-4%, that damage has been done. Where we used to feel pretty good about our paychecks stretching across the grocery store, we feel like our paychecks are shrinking during each trip to the grocery store. I remember, I would walk out of the grocery store with two bags of groceries for about $50. Now I walk out of the grocery store with the same two bags for about $90.
National numbers are important, but don't tell the whole story. Cape May County has experienced income growth over the last decade, but always less than inflation. Between 2010 and 2023, the county experienced a median household income growth of just over 15% or about $11,700. Essential costs, including food, housing, and everything else, have grown at much steeper rates than that.
Per capita personal income in the county even decreased 2.5% in 2022 according to a recent economic update. For locals dealing with seasonal work related to tourism, that loss has added another level of stress.
The Cost of Surviving
Residents point to the basics as the hardest pinch:
- Groceries: A carton of eggs that were $1.50 a couple of years ago can cost close to $5 now. Prices for every other meat and dairy product remain high.
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