LIVERPOOL, N.Y. (NCC News) – The rising prices of products, thanks to inflation, is leading some businesses to pass on the extra costs to customers.
Local restaurant owners, including Nick Ioannidis, of Gardenview Diner in Liverpool, are making adjustments in their menus.
“We just recently changed our menu, at the beginning of March, and that was in response to a lot of products going up, but that hadn’t changed in two years,” Ioannidis said.
Ioannidis explained that the restaurant does not change prices often and works on more of a cycle, where they change menus every two years.
“If things don’t come down then we have to make an adjustment,” he said. “Even with this current menu change, we didn’t change the whole menu. We just changed certain products that are being hit hardest.”
Restaurant owners in Baldwinsville and Syracuse also said they have raised prices due to rising food costs.
Economics of Inflation
Economist and Syracuse University professor Andrew Jonelis says it isn’t just a matter of traditional supply and demand.
“Well, for Central New York I wouldn’t say it’s much different from the situation nationally,” Jonelis said. “So, more money flowing through the economy tends to drive up prices so that with higher prices, we see more inflation, money becomes less valuable.”
Inflation is the rate of increase in prices over a given period of time.
Jonelis attributes the bump to the Covid-19 pandemic and said the market is still working to stabilize after presidential administrations added large amounts of money to the economy in a short amount of time.
The price of consumer goods increased by 0.5% in January and continued to grow in February, according to the U.S. Bureau of Labor Statistics.
Food products have grown in price by 2.5% in the last 12 months.
Ioannidis said that the numbers and changes in inflation are not the most important things.
“We get caught up in the small figure of 2%, 3%, which is a small synopsis of what is going on,” he said. “It’s just so many variables, transportation, diesel prices and then a lot of it is who can pick the produce, who can pack the eggs.”
Ioannidis said it is not a one dimensional issue.
Restaurants and Shortages
Many believe that prices go up because there are shortages of foods or other products that restaurants are using.
In his business, Ioannidis said, he has not experienced a shortage of products
“If I went to my suppliers today and said, ‘can I get 20 cases of eggs Friday’ they would say, ‘OK,’” he said.
Ioannidis said it can be a little different for retailers because of consumer actions.
“The retail end of it becomes stories of people going into Costco and taking shopping carts full of eggs because they think they’re going up, when, now, in the last week they’ve plummeted,” he said.
Most local retailers in Central New York are selling eggs for about $5.
VIDEO TRANSCRIPT: Central New Yorkers battle inflation as prices continue to rise
Jackson Cowen: The effects of inflation are hitting hard acrosse the country and Central New York is no different.
Cowen: Much of the attention has turned to the rising cost of eggs.
Cowen: And with increasing costs for several other items as well, local restaurant owners are feeling the effects.
Cowen: Including Gardenview Diner’s Nik Ioannidis.
Nik Ioannidis: We just recently changed our menu, at the beginning of March, and that was in response to a lot of products going up, but that hadn’t changed in two years.
Cowen: Diner’s in Baldwinsville, Liverpool and Syracyse have all increased their menu prices due to inflation.
Cowen: But what really is inflation?
Cowen: Economist and Syracuse University professor Andrew Jonelis says in simple terms, it is the rate of increase in prices over a given period of time.
Andrew Jonelis: Well, for Central New York I wouldn’t say its much different from the situation nationally. So, more money flowing through the economy tends to drive up prices so that with higher prices, we see more inflation, money becomes less valuable.
Cowen: And prices have been rising. According to the U.S. Bureau of Labor Statistics, the price of all consumer products increased by .5% in January and continued to climb in February.
Cowen: Food products, specifically, have seen a jump of more than 2.5% in the last 12 months.
Cowen: But back at the diner, Ioannidis reminds us that these prices can be volitile.
Ioannidis: The retail end of it becomes stories of people going in Costco and taking shopping carts full of eggs because they think they’re going up, when now in the last week they’ve plummeted.
Cowen: The cost of a dozen eggs at most major retailers in Syracuse is about $5 right now.
Cowen: Both Ioannidis and Jonelis expect that price to continue to fluctuate.
Cowen: In Liverpool, Jackson Cowen, NCC News.