How Pennsylvanians are coping with price hikes: ‘Inflation is ridiculous’

Across the nation and here in central Pennsylvania, people are shelling out more money for basic necessities such as gasoline, rent, utilities and food.

Price hikes are affecting everyday purchases from cappuccinos to cars.

Just how consumers are reacting to sky-high prices and record 40-year inflation depends on whom you ask. Some are riding on pent-up demand from the pandemic and solid stock market returns. Others, feeling a little more anxious, are tapping the brakes on discretionary spending.

“The inflation is ridiculous,” said Andrea Regis of Hampden Township. “You cut back on going places. I’m cooking more at home. I find myself using the Crockpot, the air fryer more.”

Many Americans are similarly trying to spend less, according to a recent CNBC/Momentum poll. About 53% of Americans said higher prices have caused them to cut back on dining out, while 39% said they are not driving as much. About 35% said they canceled a monthly subscription and 32% switched from a name brand to a generic product.

Much like the recession in 2007-09, some consumers are looking for ways to reduce spending as they are hit with price hikes from every direction. Gasoline is hovering near the $4.80 cents a gallon mark, while utilities from cable service to water and electric are on the rise. PPL Electric customers will see a 38% increase on utility rates starting in June.

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Trips to the grocery store have become stress inducing as food prices soar, mostly due to supply chain issues, severe weather in some parts of the country and the ongoing war in Ukraine. Federal data shows Americans are paying about 10% more at the grocery store compared to a year ago, with beef prices rising 16%.

Even trips to the beach are costing more with everything from beach house rentals to Boardwalk eats rising. Shopping patterns are shifting as noted by the latest quarterly sales data from two of the nation’s top retailers, Target and Walmart.

Walmart Chief Financial Officer Brett Biggs told CNBC some shoppers are buying store brands for deli meats and buying half gallon of milk rather than full gallons. At same time, he said, shoppers are buying new gaming consoles and patio sets.

Target’s CEO Brian Cornell told the network sales of luggage and children’s toys are up as more people travel and children’s birthday parties return. But items such as televisions, bicycles and kitchen appliances dropped as people turn to more experienced based purchases such as trips and concerts.

For some consumers, it boils down to what to eliminate.

“Pretty much trimming the fat,” said Justin Ledger of Lemoyne. “It’s more like trying to make more of our food at home.”

He said nearly everything at the supermarket costs more, so they are shopping at discount stores such as Grocery Outlet and Aldi. Ledger said he wonders if prices will ever drop and what the silver lining will be when the economy recovers.

Regis, who owns Regis Prep & Paint, said he isn’t ashamed to admit he picks up some food at a pantry for his family to make ends meet.

The U.S. Department of Agriculture reports food at-home prices are expected to increase 3% to 4% by the end of the year. Many grocery stores including Karns Foods, based in Silver Spring Township, report shoppers trading down to cheaper private label brands.

Shoppers are also gravitating toward pork and shrimp, which haven’t experienced price jumps like some other proteins, said Andrea Karns, vice president of sales and marketing for Karns.

“As we move toward grilling season burger, chicken thighs, chicken drumsticks and sausages are growing categories as those price points are strong options for summer cookouts,” Karns said.

Weis Markets’ spokesman Dennis Curtin said meat sales have also shifted to more processed and deli items, while shoppers are buying smaller size snacks and bakery items such as brownies and cupcakes opposed to full sized cakes.

Consumers are also feeling the pinch at restaurants. Kenny Henny, one of the owners of Got Jerk Island Grill in Lower Paxton Township, recognizes business has dropped in the past two to three weeks, likely the result of people exercising more caution about spending.

He said weekend orders are down and he is concerned about how business will play out during the traditionally busy summer season.

Nationwide, restaurant sales in April rose by 2%, according to The National Restaurant Association but the group anticipates consumer habits will change in the coming months. Thirty-six percent of consumers say their personal financial situation is currently worse than it was before the start of the coronavirus pandemic, according to a recent national survey conducted by the association.

Ted Kalathas, owner of Theo’s Bar & Grille in Lower Allen Township, said the restaurant is busier than ever, but he thinks the momentum will taper off and habits may change. People may come out to eat once a week, he said, opposed to twice a week.

“People are still on the high, they are spending. But the stock market is starting to come down. Overall, you are going to see a slowdown. It’s going to happen,” Kalathas said.

Still, some like Marilynn Noel of Middle Paxton Township are not worried. She said while she’s not taking pricey trips to Europe, she is still buying non-essential items including a native Japanese tree she recently purchased at the PA Open Air Farmers Market in Harrisburg.

“It’s a global economy. It’s going to do what it’s going to do,” Noel said.

Ann Vazquez of Lower Paxton Township, a retired teacher, said she’s not concerned because her investments with husband, Ruben Vazquez, over the past few years have done well. Plus, she noted the price hikes are understandable.

“People need to be paid a living wage and we understand,” she said. “A lot of things should have gone up years ago.”

Proving that inflation isn’t impacting everyone’s budgets, travel is booming.

“Surprisingly, this is going to sound not right to you. We’ve had the highest booking travel year in 40 years,” said Brenda Elliott, owner of Elliott Excursions in Enola. “People are spending more than they have ever spent on vacations.”

She said after a two-year hiatus from the pandemic, her phone is ringing all day with inquiries about vacations to destinations around the world including Europe and the Caribbean. Cruises are also booking quickly, she said, noting Royal Caribbean cruise lines said it recently had its highest sales month in 53 years.

“They are just going and they are spending the money they saved for two years. The planes are full, the hotels are full,” Elliott said.