Understanding Why Prices Are Increasing

Olabisi Giwa, Walter Payton College Prep, Junior, Fall 2025

It is known to most shoppers that the price of everyday items has increased drastically. Imported goods bear the weight in unexpected ways. Everyday products like aluminum and cardboard used in schools, hospitals, restaurants, etc. have driven the prices of common supplies up substantially. Recent economic data illustrate the scope of this problem on a smaller scale. “US inflation was 3% in the 12 months to September, having gone up since April, when it stood at 2.4%. The cost of groceries was up 2.7% over the period. Beef and veal were up more than 14%, while coffee surged by nearly 19%” (Clarke, 2025). Although these percentages appear small, imagine if every item on your grocery list increased by an average of 1.5%. 

Due to inflated prices, small businesses are having a difficult time keeping afloat. Small business owner and teacher Ann Almeda adds that “inflation has increased the price of goods, labor, and operating costs, which tightens my profit margins, forcing me to increase prices to keep my store open.” This is awful, and on top of that, stagflation will cause it to take a long time for small business owners to get back on their feet. In addition to our recessive economy, new legislation under the Trump Administration has placed tariffs on imported goods and reduced the taxes that billion-dollar corporations should be paying. Tariffs are defined as a tax paid on a particular class of imports or exports. The New York Post stated, “American consumers will shoulder 55% of tariff costs, while US companies will take on 22% and foreign exporters will absorb 18% by slashing prices on their goods” (Herzlich, 2025). They were intended to discourage outsourcing to overseas workers by major corporations and create domestic job opportunities for lower-class Americans. However, things don't seem to be working out as planned.

These economic pressures are compounding on consumers. “The current tariff policies intentionally punish local entrepreneurs who rely on affordable imported goods,” says Brown University economics professor Sebnem Kalemli-Ozcan. Tariffs increased operational costs for the small businesses that rely on exports to make their products, and have drowned companies that only have exported products.