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Tuesday, 30 November 2021 12:14

High Inflation Causing Virginia Businesses to Struggle

Written by Tyler Arnold, The Center Square
High Inflation Causing Virginia Businesses to Struggle Shutterstock

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After facing economic hardships from pandemic-era restrictions and struggling to find workers because of the subsequent labor shortage, Virginia businesses are now facing another problem---inflation.

Inflation rates have risen in recent months, surging to 4.2% in July and up to 6.2% in October. Inflation is an increase in prices for goods and services and a reduced value in the country’s money, which means every dollar is progressively worth less than it was the previous month.

 

High inflation is caused by a variety of factors, including supply shortages, high government spending and the Federal Reserve increasing the money supply.

 

Current inflation rates are the highest they’ve been since the 1990s, causing businesses and consumers to make tough decisions on how they will spend their money amid soaring prices.

 

Tony Stafford, founder of local northern Virginia chain Ford’s Fish Shack, told The Center Square everyday items he never had issues with acquiring are taking between two and three weeks to be delivered.

 

“Everything from to-go boxes to canned chili sauce are consistently out of stock,” Stafford said. “I used to use three to four vendors; now I have to use six to eight to make sure I can find the items needed to run my restaurant. The prices of those items keep increasing to the point that I cannot use a paper menu, because prices change on a daily basis. It continues to be a challenge and doesn’t seem to be getting any better for my restaurants.”

 

Robert Melvin, director of government affairs at the Virginia Restaurant, Lodging & Travel Association, told The Center Square these problems are causing a lot of problems for the businesses he represents.

 

“Our people are seeing monumental increases on things,” Melvin said. “...Our folks are really taking a hit.”

 

Melvin said the cost of food items have gone up across the board, including the cost of chicken wings and crab meat. Hotels are struggling to obtain...


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