Consumer Seeing Rising Prices Across Many Sectors In 2021

See which items are costing more in 2021.

Video Transcript

- Well, new this morning, Americans emerging from a year spent at home are in for a surprise at the store. There are prices rising on just about everything from gas to groceries. Makenzie O'Keefe joins us from the CBSN Denver studio. Mackenzie, Americans can look forward to paying a lot more for just the basics.

MAKENZIE O'KEEFE: Yeah, that's right. And just to give an idea about those price hikes, citrus fruit has gone up by almost 10% and beef prices up more than 7%. Then you've probably noticed at the pump, gas prices have also skyrocketed by more than 22% compared to last year. UCLA senior economist Leo Feller says that when gas prices fell so low last year, it actually put some oil producers out of business. And then production still hasn't caught up as drivers hit the road once again. Meanwhile, demand for groceries is up 11%. And that's because people hunkered down at home. And that put pressure on suppliers, which then drove up food prices.

- This will start changing as people shop less at grocery stores and as they go out more to restaurants.

- You seem pretty confident that this is not the beginning of an inflationary period.

- Yeah, I don't think. So this is very different from the 1970s. The consumers have a lot more power these days.

MAKENZIE O'KEEFE: So you can still expect basics like toilet paper and diapers, toothpaste all to cost more. Procter and Gamble, Kimberly-Clark, and Coca-Cola announced they too are increasing prices because they're paying more for raw materials that are also in short supply. So consumer prices are expected to stabilize in the coming months. But one exception may be lumber. Lumber prices have also skyrocketed by more than 300% in the last year. And that says people who are forced to isolate at home were making improvements on their houses. So right now, there is no sign that any construction will be slowing down any time soon, Don.

- But a lot of nice new looking houses.

MAKENZIE O'KEEFE: Exactly. New fences, decks, you know.

- All right. Thanks, Mackenzie.