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Soaring inflation could intensify for everyday items

Posted at 5:30 PM, Feb 25, 2022
and last updated 2022-02-25 20:56:08-05

SAN DIEGO (KGTV) — Russia's invasion into Ukraine is expected to make already soaring inflation even more intense for everyday items.

From beachwear to jeans to lotions, Jackie Karnavas offers an eclectic collection inside her Cardiff by the Sea Boutique, Sea and Wander.

She bought the shop three years ago, never expecting to weather the COVID pandemic.

"We've got inflation problems, gas prices went up, you've got labor wage increase, and then a shortage of labor," Karnavas said Friday.

Those challenges, now exacerbated with Russia invading Ukraine, sending oil to over $100 dollars per barrel and gas prices to a record high that is expected to keep growing. The higher transportation costs are, the more it costs restaurants and businesses for transportation and deliveries, which will get passed along to the consumer.

In all, that's led to increasing concerns from San Diegans over inflation, already at a 40-year-high of 8.2. percent year-over-year.

Karnavas says she is also worried that if people are getting walloped at the pump or at the grocery stores, they will not want to spend their money where they do not have to, such as at her boutique.

"If someone lives on a fixed-income budget, whether it is their paycheck, whether they are older and they make so much a week, it will impact the consumer spending, period," said Karnavas.

University of San Diego economist Alan Gin says inflation could intensify given the situation in Ukraine.

The country is a leading exporter of barley, which is a key ingredient for animal feed. If feeding animals get more expensive, then prices for meat will rise for the consumer. Barley is also a key ingredient in beer, a point of pride in San Diego.

Additionally, Ukraine is a top iron and titanium exporter. San Diego is home to major golf club manufacturers that need those materials.

"We have a global market now, and as a result of that we could get higher prices, which will affect us here in the U.S.," Gin said.

He noted that even if the U.S. wasn't buying directly from Ukraine, a supply shortage all over the world would bring up prices locally due to increased demand.