An economist says the impacts of COVID on supply chains have led to the rise in prices of various products.

JACKSONVILLE, Fla .– From groceries to gasoline, prices are on the rise for many products.

The US Department of Labor reports that the consumer price index has risen five percent since last May.

They call it the biggest year-over-year price increase since August 2008.

Dr Rody Borg, professor of economics and public policy at the University of Jacksonville, says many global supply chains have been disrupted.

Companies have decided to keep less inventory of goods.

“Many production and supply chain mechanisms around the world over the past 20-30 years have shifted to a just-in-time mindset. The goods are produced, shipped just in time for delivery, ”says Dr Borg under normal circumstances, it works because it reduces the cost of storing the goods.

He says the effects have been felt in the production of food, lumber and, more recently, automobiles.

Dr Borg says historically inflation rates were higher in the 1970s and 1980s.

While the recent surge may be concerning, Dr Borg says you have to be careful with your money.

“Can you find ways to stretch your food budget? Can you minimize the number of trips you have to make… Try to limit trips so that you spend less money on gasoline, try to delay major purchases that might be affected at this time and be patient, ”said Dr. Borg.

Dr Borg estimates that it will be a few more months before prices come back down.

“I know the Federal Reserve System, they don’t panic that inflation is between 1 and 2.5%… I think it will take at least six months to a year to resolve all these problems. supply chain, ”said Dr Borg. mentionned.