How can a thriving job market result in higher inflation? One would think that more jobs would be a great thing for the United States. The average American worker has choices right now. But due to labor demands, employers are paying top dollar for new hires. Then, to continue to make big profits, they pass those added expenses on to customers in the form of higher prices.

Some would say big businesses are price gouging. The EWG called out Exxon for earning $56 Billion in profit during 2022 when there was no gas shortage causing the increase in prices at the pumps. Farm Action, an advocacy group, claims egg suppliers are price gouging. The price for eggs is 70% higher now than in December of last year. Egg producers are being accused of using the bird flu as an opportunity to reap huge profits.

Although many states are attempting to introduce legislature to prevent businesses from price gouging, “Greedflation”, a term used by the New York Times in an article early last year will continue until fewer jobs are available. Fewer jobs mean lower hourly wages and lower prices for products and services. 

Is there something the average citizen can do now to combat unreasonably high prices? Yes. Report suspected price gouging to your state’s Attorney General. Make lifestyle changes to offset high prices in the stores and at the pumps. For example, ride share or use public transportation when you can, and switch from eggs for breakfast to oatmeal. Reducing expenses will help you save towards a rainy day fund, and save a little extra to spend on a family Staycation.