Americans Still Seeing Higher Prices And Empty Shelves

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Here's why even basic and essential items are in short supply right now:

The Covid-19 pandemic generally, and now the omicron variant specifically, is the overall reason. Omicron is so infectious that it is now sidelining many workers at once, even if temporarily. This exacerbates the labor shortage in an already historically tight job market. Some grocery chains are reporting that they simply don't have enough staff to restock even if they have products available. Some are cutting back on the array of choices if there isn’t enough staff to prepare them.

Downstream, consumers are also feeling the effects of the omicron variant and are changing their behavior. Many are stocking up on extra staples at the grocery store because the variant is once again keeping people home and out of restaurants. It may also be because schools are intermittently closed so kids are eating more at home. And when confronted with a half-empty shelf or in preparation for the possibility of being quarantined, it is logical to grab a few extra items and stockpile.

 

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