The consumer price index tracks the average change over time for prices paid for goods and has been tracked since 1967. The CPI has been increasing at a higher rate since 2021 in the Houston-Sugar Land-The Woodlands area. RISING CONSUMER PRICE INDEX
CPI of Houston-Sugar Land-The Woodlands
All items except food & energy
All items
7.8%
+8% +7% +6% +5% +4% +3% +2% +1% 0% -1% -2%
“It is not just the cost of our food going up. It is their food at the grocery store [and] their gas.” Bonnie Alcaraz, owner, Uli’s Kitchen
4.5%
6.5%
0.7%
0.2%
2.8%
0.7%
-1.3%
SOURCE: U.S. BUREAU OF LABOR STATISTICS/ COMMUNITY IMPACT NEWSPAPER
Several factors have contributed to the levels of inflation across the country, including supply chain issues, labor shortages and the ongoing coronavirus pandemic. Included in this timeline are consumer price index figures for the Houston region, which have fluctuated along with economic factors during the coronavirus pandemic. INFLATION OV E R T I ME
for prices paid for goods. Uli’s Kitchen opened in May 2021, and Alcaraz said she has always wanted to be transparent with cus- tomers. When prices increased in mid-January due to supply issues, she said customers remained largely supportive. Alcaraz said she has tried to find small ways to cut back on costs for her business, such as serving limes with margaritas upon request. “You would be amazed; it is one wedge of lime,” she said. “But when we serve 500 of those per day and 200 of them come back in the trash, that is a huge chunk of savings.” Other busi-
The Woodlands community has embraced his new business. “We are going to do whatever we can. We know they are feeling it in their pockets as well,” he said. Nonprofits feel pinch Local nonprofits are also feeling the effects of inflation, including the Montgomery County Food Bank. Kristine Marlow, president and CEO of the Montgomery County Food Bank, said food banks across the country are being hit with “the perfect storm” as a result of supply chain issues, limited resources, infla-
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region shows Houston-area infla- tion was slower in January this year based on housing data. “Prices in Houston are growing slower than DFW and the nation,” he said. “This has to do mainly with housing inflation, which includes shelter, utilities cost and rent.” While The Woodlands area is expected to handle the increased prices better than other places due to its higher average income levels, Cañas said the effects will still be felt throughout the remainder of the year. The increasing costs are affecting local business owners, such as Uli’s Kitchen owner Bonnie Alcaraz. “[On March 23], limes hit $100 per case,” Alcaraz said. “It forced us to make some tough decisions. We do not want to compromise the quality of anything we serve, but we have to be realistic about what people can afford and what they are willing to pay.” Cañas said he believes unless there are major positive developments, such as the Russia-Ukraine war ending, prices will likely continue increasing throughout 2022. “Inflation hits … the low-income section of the population the hardest,” he said. “They tend to spend a higher proportion of income on food, where you see prices growing faster. If you are in a low-income sector of the pop- ulation, you will be more hurt than if you are in a higher-income sector.” Increasing local costs According to a March 10 report by the U.S. Bureau of Labor Statistics, two sectors seeing consumer price index increases since 2021 are food and energy, which increased 6.8% and 24.5%, respectively. The CPI mea- sures the average change over time
March 2020 Coronavirus lockdowns take effect CPI: 230.147 (as of February 2020)
tion and the ongoing effects of the corona- virus pandemic. “Our operations costs have increased significantly. A large portion of our food is donated; however, … we have had to purchase more and more food to fill the gaps,” Marlow said. An email from Marlow states the
April 2020
AT THE [MONTGOMERY COUNTY] FOODBANK, OUROPERATIONS COSTS HAVE INCREASED SIGNIFICANTLY. KRISTINE MARLOW, PRESIDENT AND CEO, MONTGOMERY COUNTY FOOD BANK
ness owners began oper- ating when prices started to increase, i n c l u d i n g Kurt Crow-
Initial federal stimulus checks sent out, giving consumers additional buying power CPI:
December 2020
ley, owner of Fuhgedabou- dit Bagel Co., which opened in late November.
226.387
A second round of stimulus payments
April 2021
Montgomery County Food Bank’s fuel costs increased 35% over in March. Marlow added the demand for the food bank’s services have con- tinued to increase since the start of the pandemic, and the number of people being served is higher than pre-pandemic numbers. Although the median household income in The Woodlands is $126,098, nearly twice the median income for the rest of the state, around 30% of households in The Woodlands are at or below the state median as of the U.S. Census Bureau’s 2020 five-year Annual Community Survey. “In 2021 alone, we served over 9.6 million meals to more than
helps fuel demand for consumer goods CPI: 230.388
“Some of our ingredients have risen in cost by 35%-40%,” Crowley said. “It is alarming.” Crowley said he has seen prices increase on products such as flour, bacon and cream cheese on a near- weekly basis, so he has had to change his strategy for getting supplies. “It takes more time for me, but I am having to cherrypick various items based off certain vendors based on pricing I get,” Crowley said. Alcaraz said despite the struggles she and her business are facing, she remains optimistic, noting this is not the first round of inflation she has seen. Crowley said he appreciates how
American Rescue Plan Act stimulus funding takes effect CPI: 236.604
November 2021
White House announces vaccines available to ages 5-11 CPI: 245.509 (as of December 2021)
February 2022
Russia-Ukraine war begins, affecting oil prices CPI:
250.563 SOURCE: U.S. BUREAU OF LABOR STATISTICS/ COMMUNITY IMPACT NEWSPAPER
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