PHOENIX — After a year of climbing prices, the U.S. finally saw some relief.
Gas prices are down, and the latest reports signal inflation is slowing. But local businesses tell ABC15 they are still getting hit hard.
“Owning a pizzeria there’s good years and there’s lean years,” said Zzeeks Pizza owner Mark Pectol. “And this hasn’t been a good year.”
Pectol has been in the pizza business for decades.
With inflation and high prices, Zzeeks eventually had to pass some of the costs on to customers.
“We used to be able to sell you a pizza for 15,16 bucks now it has to be 22, 23, 24,” said Pectol.
We last spoke with the small business owner when Zzeek’s five locations put their $2 delivery fee in place.
That was back in June, months later when it comes to food prices Pectol said it’s only gotten worse.
“Honestly it’s across the board, but specifically flour,” said Pectol. “The 50-pound bags that we used to buy oh $11.50, $12. It’s $27 now.”
Tuesday the latest Consumer Price Index numbers seem to signal inflation is cooling, with just a 0.1 increase for all urban consumers.
In the last year, all items have seen a 7.1% increase. But that’s the smallest 12-month jump since the period ending December 2021.
“I would say there’s a light at the end of the tunnel,” said ASU Professor and economy expert Dennis Hoffman.
He told ABC15 he doesn’t believe prices are going to fall dramatically, but the rate they were rising will slow.
Even though the November numbers show food still over 10.6% higher than last year.
“Food prices are still growing reasonably fast, but I think they will abate here in the next month or two because commodity prices say wheat and things like that have leveled off,” said Hoffman.
He says transportation costs should level off too, also helping.
Hoffman said the people getting hit hard by inflation are those dealing with rising costs, along with paying rent.
He said he expects the Federal Reserve to still hike rates another half percent.
“Hopefully we are going to get some relief next year,” said Pectol.
Gas prices are down in Arizona, but Zzeeks’ $2 delivery charge is staying for now.
Right now, Pectol said he’s hopeful things will improve in 2023.
“As of yet we haven’t seen it but were hopeful,” said Pectol.
