Cape May Court HousePrices are higher, paychecks don’t go as far, and the residents of Cape May County are saying that simply getting through day-to-day life has become more difficult than ever. Inflation is something we all saw change across the country, and residents here are feeling it in their daily lives and the grocery store aisles.
For a number of years, inflation was maybe only a thought larger than a good headline. In 2019, for example, the national inflation rate was about 1.8%, which was a pace a lot of households could keep up with. And then Covid happened, which snarled supply chains and demand changes like was never seen before, and before anyone knew it, prices were climbing fast. In 2021, inflation quickly rose to approximately 5%, and after that it climbed to 8% – the highest rates of inflation in 40 years.
Today, while the official inflation rate has cooled to about 3% to 4%, that damage has been done. Where we used to feel pretty good about our paychecks stretching across the grocery store, we feel like our paychecks are shrinking during each trip to the grocery store. I remember, I would walk out of the grocery store with two bags of groceries for about $50. Now I walk out of the grocery store with the same two bags for about $90. National numbers are important, but don’t tell the whole story. Cape May County has experienced income growth over the last decade, but always less than inflation. Between 2010 and 2023, the county experienced a median household income growth of just over 15%, or about $11,700. Essential costs, including food, housing and everything else, have grown at much steeper rates than that.
Per capita personal income in the county even decreased 2.5% in 2022, according to a recent economic update. For locals dealing with seasonal work related to tourism, that loss has added another level of stress. Residents point to the basics as the hardest pinch: *Groceries: A carton of eggs that was $1.50 a couple of years ago can cost close to $5 now. Prices for every other meat and dairy product remain high. *Gasoline: Prices remain volatile; however, filling up at the pump is much steeper than before 2020. *Housing: Prices for rent and mortgages are already strained amid vacation demand in Cape May to higher degrees, so residents here are being squeezed. *Insurance and health care: Insurance and co-pays have continued to rise, shrinking available disposable income. Even small luxuries are being cut back. Families have reported skipping nights out, vacations just to pay for everyday living. Some have said medical visits, and more!
Economists say inflation has been cooling from its peak, but there is little solace in Cape May County, where inflated price levels remain. What was once perceived as temporary sticker shock has sunk in as a new normal, higher prices without corresponding wage increases. Local officials worry persistent inflation affects not just families but small businesses that are dependent on a combination of tourist dollars and local spending. If residents cut back spending, those ripple effects are felt fast in the county’s economy.
For the time being, many families throughout Cape May are doing the best they can – either planning a budget, asking for extra shifts at the job or going to food pantries. However, the feeling on the ground is evident: People are tired, and they need relief.
Kamala Budhathoki Sarup Cape May Court House
published in capemaycounty herald.
