Study shows rate of inflation in Massachusetts outpacing rest of country
BOSTON - A new study from the Beacon Hill Institute says the rate of inflation in Massachusetts is outpacing the country in several key categories including gas, used vehicles and electricity.
Chris Wallerce, owner of Winthrop Marketplace, says he's seeing the signs of inflation in his store with increasing on everything. "It's the hardest it's ever been to be in business with every cost going up," said Wallerce.
He can't even offer the sales he used to with vendors passing on costs for things like fuel and packaging. "I used to get deals from vendors and could offer 10 items for $10. Now it's four five dollars or two for three dollars."
Even his electric bills have tripled just trying to keep all his freezers running 24 hours.
Customers are feeling the pinch like Kristin Boivin shopping with her children. "We're not buying anything extra only what we need," Boivin said. "We're cutting corners everywhere really."
According to the study, the news is discouraging when it comes to prices in Massachusetts. Gas prices are up 54% compared to 48% nationally, used vehicles are up 37% versus 35% nationally, natural gas up 27% compared to 21.6% nationally.
Transportation services are the only lower costs in the top five compared nationally with 20% versus 27%. Electric costs in Massachusetts are up 14.5% compared to 11% nationally.
"Those top five goods make up a majority of what people spend money on," said Paul Caney with the Fiscal Alliance Foundation.
A group of bipartisan lawmakers who participated in a news conference about the study says the state should have cut its gas tax, and should have sent tax relief to Governor Baker's desk with the legislative session winding down in a few days.
Chris Wallerce is doing what he can not to pass increased costs onto his loyal customer base. "We're trying to keep prices as low as possible and absorb as much as we can," Wallerce said.