Supply chain disruptions have not only been causing product shortages, they’re also responsible for price hikes across several industries. For one, the global semiconductor chip shortage is affecting the prices and availability of electronics and tech products such as gaming consoles, computers and even cars.
Because automakers rely so heavily on those chips, some 2022 models are delayed — or suspended. Tap or click here for details on how the chip shortage has led to the cancellation of some vehicle orders.
It’s not just about electronics and cars. Get ready to pay more for your groceries in the coming new year due to a combination of supply chain shortages, inflation and the continuing pandemic.
Food prices are on the rise
Food manufacturers are set to raise prices in the coming new year. The Wall Street Journal reports that this follows the trend from 2021 and is part of “what businesses and economists call the highest inflation in decades.”
Higher wages/labor, logistics, material and freight costs are giving executives some wiggle room to raise their prices. The report cites a study from research firm IRI that shows a 5% rise in food prices in the first half of 2022.
Price increases will range from 2-20% across all groceries, according to the Journal. Among the products expected to see a price hike are your everyday staples such as produce, dairy, bread and juice plus snacks, candy, alcohol and condiments. Here are some specific examples:
- Cookies, candy and other products from Mondelez International, which said it will raise prices by 6-7% in January.
- Products from General Mills will see a price raise in January.
- Campbell Soup Co. will be raising prices for its goods in January.
- Kraft Heinz Co. is raising prices for Jell-O pudding and Grey Poupon mustard among other products at an average of 5%, with some going up as much as 20%
Earlier this month, the U.S. Bureau of Labor Statistics reported that the consumer-price index rose 6.8% from November 2020 to November 2021. This was the largest 12-month increase since June 1982.
How to save in the new year
There are ways to offset some of the extra money you’ll be spending next year and this doesn’t only apply to groceries. You can save on OTC medicine and your prescriptions at Walgreens, CVS, Walmart and Rite Aid by signing up with their rewards and membership programs. Tap or click here for instructions on how to get started.
GoodRx can save you up to 80% on your prescriptions and the company even set up a landing page for Kim’s readers. Tap or click here to learn how it works.
🚨 What it means for you
Supply chain problems will absolutely continue into 2022, and possibly even into 2023. Plan for shortages to continue, and possibly more price hikes covering everything from products you buy to services you subscribe to.
✅ Cashback apps return money to you as you spend it and they’re great for all your shopping needs, including groceries. Tap or click here to see how this can help you with purchases done on your Capital One card, at Target and at the pump.
✅ Tech isn’t getting any cheaper, and it can be even more costly if you regularly upgrade your smartphone or other gadgets. Tap or click here for a list of mistakes that could be costing you, and easy fixes to save some cash.