The nation’s inflation rate rose again in June, increasing from 8.6% in May to 9.1% in June. Consumers across Kentucky are feeling the pinch as they head to the grocery store or buy gas.
“The Progresso soup used to be $1.99 [a can] and now they raised it a whole dollar and now it’s like $3,” said Covington resident Jeannine, who didn’t want to give her last name.
Jeannine also noticed that the cost of lunch meat increased during her trips to Kroger. While she hasn’t been cutting back yet, she plans to be more careful with her money as food prices continue to increase.
In his Thursday press conference, Gov. Andy Beshear covered the general fund budget surplus that was announced Monday, showing that Kentucky exceeded its budget estimate by $945.4 million or 14.6%, with the fund reaching $14.7 billion. He also addressed rising inflation prices.
“I reported a 14.6% yearly growth in the general fund that is the highest growth in revenue since fiscal year 1991,” Beshear said. “That’s the highest growth in 31 years. General fund receipts totaled $14.7 billion, resulting in a surplus that, by the time we close the books, will be over a billion dollars. That is the second highest surplus the state has ever seen.”
But while the general fund receipts increased for the state, consumers might not have as much in the coffers.
“The Consumer Price Index and overall on inflation that’s tough, some of the highest in 40 years,” Beshear said, arguing that the issue inflation is more complicated than what he called political talking points. “The highest that many of us have ever seen or ever had to budget through and it’s in areas like food and gas and energy and rent and so many different areas.”
Last month, Dr. Will Snell, a professor in the College of Agriculture, Food and Environment at the University of Kentucky, testified to the Interim Joint Committee on Agriculture to talk about the issue in Kentucky.
“Inflation is measured, as most of you all know, by the Consumer Price Index,” Snell said. “What you may not know is CPI is actually a basket of market goods that certainly includes things such as food prices in cars and the price of gasoline. But it’s actually a gauge of 80,000 different goods and services.”
But U.S. Senate Minority Leader Mitch McConnell (R-Ky.) said inflation is caused by policies set by Democrats, who hold control of both the House and Senate.
“(The) CPI report told Americans what they already knew all too well: the disastrous effects of Washington Democrats’ spending binge last year still have our economy in a vice grip,” McConnell said on the Senate floor Tuesday. “Year-on-year, inflation has hit 9.1% for the first time since the fallout of the Carter Administration. And the signs are inescapable. Price hikes on everything from food to fuel to housing are setting new multi-decade highs.”
Beshear noted that fuel prices are dropping in Kentucky, noting that gas fell 45 cents in Covington over the past couple of weeks.
“We’re certainly seeing in a couple of areas, including gas, that we’re starting to see some decline in prices,” Beshear said.
While gas prices might be declining locally, other prices, particularly food prices, continue to rise.
“A shopper in Oregon told a reporter recently she doesn’t buy beef anymore. ‘We kind of try to eat what we have while we have it.’ Yesterday, we learned exactly what she and millions of Americans are up against: The fastest-rising grocery prices since 1979,” McConnell said.
Beshear noted that the war between Russia and Ukraine is still affecting food prices.
“You have the Russian invasion of Ukraine, I think between the two countries, it’s about 40% of the world’s wheat supply,” Beshear said.
Northern Kentucky Republican Congressman Thomas Massie has said that both Democrats and Republicans are responsible for the inflation in the U.S., and recently retweeted a graphic with a quote where Massie refers to inflation as the tax collector for the “liberal world order.”
While there might not be a solution quickly available for inflation, Jeannine has one for saving some money at the register.
“I could get brand names that aren’t very popular,” she said. “Aldi store in Newport is pretty cheap.”